In its Legal Opinion No. 45 dated 8 October 2024, the Department of Justice (DOJ) provided guidance on the application of the 20% discount and value-added tax (VAT) exemption granted to persons with disabilities (PWDs) in cases where food purchases are for group sharing or delivery. This clarification addresses whether these benefits apply to all food and beverages purchased by a PWD, regardless of quantity, provided they are exclusively for the cardholder’s use.
The request for the DOJ’s opinion was initiated by Glenda Relova, Executive Director of the National Council on Disability Affairs (NCDA), who sought clarity on whether PWD benefits should apply to group orders as long as they are solely consumed by the PWD cardholder.
The request aligns with Republic Act No. 10754, also known as the Act Expanding Benefits and Privileges of Persons with Disabilities. Under RA 10754, PWDs are entitled to a 20% discount on food purchases from restaurants if the food is for their “exclusive use, enjoyment, or availment.”
‘Exclusive’ Use Requirement
The DOJ clarified that the “exclusive” consumption of the PWD is essential for determining whether the discount and VAT exemption apply. While existing laws and guidelines do not directly address group meals, the DOJ emphasized that the benefit should only apply if the meal is consumed exclusively by the PWD, even if it is part of a group order.
According to the DOJ, the 20% discount and VAT exemption for PWDs will apply to the cost of a group meal only if it can be “clearly determined” that the food was exclusively consumed by a single PWD. Otherwise, the benefit does not extend to the entire group purchase.
To reinforce this interpretation, the DOJ cited Section 6, Rule IV of the Implementing Rules and Regulations (IRR) of RA 10754, which states that discounts and exemptions on goods and services are granted solely for the “exclusive use, enjoyment, or availment” of the PWD. This provision ensures that PWD benefits apply only to purchases made solely for the PWD’s consumption, preventing potential misuse by others in a group setting.
The DOJ also referred to the Department of Tourism’s (DOT) Memorandum Circular No. 2017-02, which reiterates that the 20% discount and VAT exemption are exclusively for PWDs and should not extend to items consumed by others within a group.
Literal Interpretation
The DOJ noted the importance of interpreting the law as written when its provisions are clear and unambiguous. In this case, the DOJ emphasized that since the law uses the term “exclusive,” it must be applied literally to uphold the intent of limiting discounts and exemptions to purchases solely for the PWD’s use. Therefore, absent explicit legal guidance on group meals, “exclusive use” should be the determining factor.
To further illustrate, the DOJ referred to Bureau of Internal Revenue (BIR) Revenue Memorandum Circular No. 71-2022, which addresses PWD and senior citizen discounts on group meals purchased through online, phone, or text transactions. According to this circular, the 20% discount is based on the most expensive and largest single-serving meal with a beverage in a quick-service restaurant.
The DOJ pointed out that while laws and regulations may not specify how to handle discounts for group meals, the term “exclusive” should guide interpretation. If a group meal purchase cannot be exclusively attributed to the PWD, the 20% discount or VAT exemption should not apply to the entire group order.
In summary, DOJ’s Legal Opinion No. 45 clarifies that PWDs can avail of the 20% discount and VAT exemption on group meals only if it is evident that the meal was consumed solely by the PWD. This interpretation is based on the “exclusive use” principle outlined in RA 10754 and its IRR, supplemented by guidance from the BIR and DOT issuances.
It is worth noting that the DOJ’s opinion is advisory and non-binding. This means that while the opinion clarifies current laws, it does not impose new legal requirements. Nonetheless, the opinion could guide future legislation or regulatory amendments to clarify the application of PWD benefits in various purchasing contexts. Future developments could include amendments to RA 10754 or additional implementing rules that more explicitly define the application of PWD benefits in diverse dining contexts.
