The Bureau of Internal Revenue (BIR) has released its implementation guidelines on the 10 percent discount and value added tax (VAT) exemption for qualified solo parents.
Revenue regulation (RR) 1-2023 dated January 17 identifies the said guidelines, pursuant to the National Internal Revenue Code in relation to the Expanded Solo Parents Welfare Act.
According to the RR, a solo parent that has a child or children with the age of six years or under, and earning less than P250,000 annually, shall qualify for the 10 percent discount and VAT exemption.
Goods covered by the discount and exemption are baby’s milk, food supplements and micronutrient supplements, sanitary diapers, medicines, vaccines and other medical supplements.
To avail of the said privileges, the solo parent shall present a solo parent identification card and parent booklet.
“The grant of the discount is only for the purchase of goods identified in the Act for the exclusive use and enjoyment or availment of the solo parent’s child or children with the age of six years or under,” the BIR said.
The guidelines also identify the tax treatment to be applied by establishments as well as the rules on keeping record of the sales made.
The regulations shall take effect within 15 days after publication in the Official Gazette or newspaper of general circulation.
