And that in order to arrive at the latter, one would have to have already determined how much the item should be priced AFTER the VAT has been removed. Given the above computation, Senior Citizen discounts are composed of two major considerations: the VAT exempted amount and the amount after the Senior Citizen discount has been applied. Sales Net of VAT = Selling Price – Amopunt of VATĪmount of Discount = Sales Net of VAT x 20%Ĥ. Determine the amount to be paid by the Senior CitizenĪmount to be paid by the SC = Sales Net of VAT – Amount of DiscountĪmount to be paid by the SC = Php 89.29 – Php 17.86 For purposes of computation, let us assume the product’s amount is Php 100.00.Īmount of VAT = (Selling Price x 12%) / 1.12Ģ. Deduct the VAT amount from the selling price to get the Sales Net of VAT: Unfazed by her experience, my aunt had me scour all available documents online that will shed light on these questions that most Senior Citizens probably want to ask:Ī. If a product or service is on promo, does it automatically mean that the 20% SC discount is no longer applicable?ī. In cases when the 20% SC discount is in fact, waived, because the service or product being sold is at a discounted price, should the 12% VAT exemption be waived as well?īefore we go further into this discussion, allow me to present the correct and detailed computation of for Senior Citizen’s discount. The cashier stood her ground and insisted that since the products that my aunt bought were already on promo price, any other discounts are no longer applicable – including the VAT exemption of Senior Citizens.
My aunt reviewed her receipt one more time and realized that even the 12% VAT exemption (which all Senior Citizens are entitled to) is not applied as well. When she inquired how come her Senior Citizen discount was not applied, the cashier replied: “Naka promo na po yung burgers.” After the cashier rang up her purchase, she was surprised to find that the only discount applied on her purchase was the advertised 50% off of the selling price. After placing her order, she presented her QC Senior Citizen ID and started counting her bills, already having computed the total amount she needs to pay: the discounted price less her Senior Citizen discount. She saw the ad on specialty burgers being sold at half the price as a promotional offering of the decades-old burger chain and decided to buy some for takeout. and another issued by the OSCA at the Quezon City Hall), had a puzzling experience at a fast food chain last week. My balikbayan aunt, who owns two Senior Citizen IDs (one issued in the U.S.
0 kommentar(er)
