BIR Revenue Regulation No. 9-2019

By

BIR Revenue Regulation No. 9-2019

issued on August 27, 2019 amends Sections 2, 3
and 7 of Revenue Regulations (RR) No. 5-2017 relative to the rules and regulations implementing Republic Act (RA) No. 10754, entitled “An Act Expanding the Benefits and Privileges of Persons with Disability (PWD)” relative to the tax privileges of PWD and tax incentives for establishments granting sales discount and prescribing the guidelines for the availment thereof, amending RR No. 1-2009. The following new paragraphs which are inserted at the end of Section 2 of RR No. 5-2017, shall be read as follows:
“Section 2. Definitions. – For purposes of these Regulations, the following terms and phrases shall be defined as follows:
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2.8 Basic Necessities – are goods vital to the needs of consumers for their
sustenance and existence. For purposes of these Regulations, basic necessities
shall include:

  1. All kinds and variants of rice
  2. Corn
  3. All kinds of bread (Pastries and cakes not included)
  4. Fresh, dried and canned fish and other marine products (including frozen
    and in various modes of packaging)
  5. Fresh pork, beef and poultry meat
  6. All kinds of fresh eggs (excluding quail eggs)
  7. Potable water in bottles and containers
  8. Fresh and processed milk (excluding milk labeled as food supplement)
  9. Fresh vegetables including root crops
  10. Fresh fruits
  11. Locally manufactured instant noodles
  12. Coffee and coffee creamer
  13. All kinds of sugar (excluding sweetener)
  14. All kinds of cooking oil
  15. Salt
  16. Powdered liquid, bar laundry and detergent soap
  17. Firewood
  18. Charcoal
  19. All kinds of candles
  20. Household liquefied petroleum gas, not more than 11 kgs. LPG content
    once every five (5) months bought from LPG dealers
  21. Kerosene, not more than 2 liters per month.
    2.9 Prime commodities – are goods not considered as basic necessities but are essential to consumers. For purposes of these Regulations, commodities shall include:
  1. Flour
  2. Dried, processed and canned pork, beef and poultry meat
  3. Dairy products not falling under the definition of basic necessities
  4. Onions and garlic
  5. Vinegar, patis and soy sauce
  6. Toilet/Bath soap
  7. Fertilizer
  8. Pesticides
  9. Herbicides
  10. Poultry feeds, livestock feeds and fishery feeds
  11. Veterinary products
  12. Paper, school supplies
  13. Nipa shingle
  14. Sawali
  15. Cement, clinker, GI sheets
  16. Hollowblocks
  17. Plywood
  18. Plyboard
  19. Construction nails
  20. Batteries (excluding cellphone and automotive batteries)
  21. Electrical supplies and light bulbs
  22. Steel wires”
    Section 3 of RR No. 5-2017 is amended to include a new paragraph to be read as follows:
    “SECTION 3. SALES DISCOUNTS WHICH MAY BE CLAIMED BY
    QUALIFIED PERSONS WITH DISABILITY (PWD).
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    All other goods and services sold by the foregoing establishments not included in the above enumeration expressly provided by law shall not be considered for the 20% discount privilege notwithstanding that the same are for the exclusive use and enjoyment or availment of the PWD. However, every PWD shall enjoy a special discount of five percent (5%) of the regular retail price, without exemption from the Value-Added Tax (VAT), of basic necessities and prime commodities enumerated under Sec. 2 (2.8) and (2.9) hereof. The total amount of said purchase shall not exceed the amount of One Thousand Three Hundred Pesos (Php 1,300.00) per calendar week without carry-over of the unused amount. Provided, that said amount shall be spent on basic necessities and prime commodities commensurate to his/her personal exclusive
    consumption and/or enjoyment within the calendar week. Provided, further that said amount shall be spent on at least four kinds of items listed as basic necessities and prime commodities.”
    Section 7.1 of Section 7 of RR No. 5-2017 is amended to be read as follows:
    “SECTION 7. EXEMPTION FROM VALUE-ADDED TAX (VAT) ON SALE
    OF GOODS OR SERVICES TO QUALIFIED PERSONS WITH DISABILITY.
    7.1 Sales of any goods and services under Section 3 of these Regulations to PWD, except sale of basic necessities and prime commodities enumerated under Sec. 2 (2.8) and (2.9) hereof, shall be exempt from the value-added tax.
    xxx xxx xxx”