Invoicing an eligible Senior Citizen or PWD discount correctly
The 20% discount and VAT exemption apply to eligible purchases — not to every sale by default. Here's what has to be on the invoice when they do apply.
What belongs on the invoice
The buyer's name
Printed on the invoice for the transaction claiming the discount — not left blank the way a normal walk-in sale might be.
The proof-of-entitlement reference
Record the accepted OSCA, PWD, NCDA or other applicable proof presented for the transaction. Acceptable evidence can depend on the customer and purchase; do not reduce the rule to one ID type in every case.
The buyer's TIN, when applicable
Include the Senior Citizen or PWD buyer's TIN when the applicable invoicing rule requires it.
The buyer's signature, unless an exception applies
Keep the buyer's signature where required. Qualified online purchases can follow the specific exception and documentation rules that apply to those transactions.
The 20% discount, shown as its own line
Applied to the eligible portion of the purchase and shown separately, not folded silently into a lower total.
The correct VAT treatment
Eligible Senior Citizen and PWD purchases of qualifying goods and services are VAT-exempt, so the VAT treatment on that line has to reflect the exemption rather than being taxed as usual.
Common questions
Does every Senior Citizen or PWD get the discount on everything they buy?
No. The discount and VAT exemption apply to eligible purchases of specific goods and services under the Expanded Senior Citizens Act and the Magna Carta for Persons with Disability — not automatically to every transaction. Whether a given purchase qualifies depends on what's being bought.
What has to be shown before the discount applies?
Verify valid proof of entitlement and any transaction-specific supporting documents. Depending on the case, accepted proof may include an OSCA or PWD ID, an NCDA-issued ID, or other evidence recognized by the applicable rule. If entitlement cannot be established, ask your accountant or the relevant agency how to treat the sale.
Is the 20% discount the same as VAT exemption?
They're two separate benefits that typically apply together on an eligible purchase — the 20% discount reduces the price, and the VAT exemption removes VAT from that eligible amount. Both should be visible on the invoice, not merged into one adjustment.
Can a business refuse to honor a Senior Citizen or PWD ID?
That's a legal question outside what this page covers. If you're unsure how a specific transaction should be treated, check with your accountant or your RDO.
Does this change anything about the invoice's serial number or format?
No. It remains the registered Sales or Service Invoice and serial series applicable to the transaction, carrying the base information RR 7-2024 (as amended by RR 11-2024) requires plus the applicable discount documentation.
For the broader set of information every invoice needs regardless of discount, see what RR 11-2024 requires on an invoice.
eInvoicePH supports eligible Senior Citizen and PWD transactions, with the applicable 20% discount, VAT treatment, buyer details and proof-of-entitlement reference printed on the invoice face. See pricing.
Last reviewed August 2026. This page is general information based on the applicable Senior Citizen and PWD laws and BIR regulations, not tax or legal advice. Senior Citizen and PWD entitlement depends on the goods or services purchased and the identification presented by the customer. eInvoicePH is not accredited, approved or endorsed by the Bureau of Internal Revenue. Confirm how a specific transaction should be treated with your accountant or your RDO.