Value Added Tax Exemption for Persons with Disability (PWDs)

Under Republic Act No. 10754 or An Act Expanding The Benefits and Privileges of Persons With Disability (PWD), PWDs are given at least a twenty percent (20%) discount and exempted from the twelve percent (12%) Value Added Tax (VAT) on the following:

  1. On the fees and charges relative to the utilization of all services in hotels and similar lodging establishments; restaurants and recreation centers;

  2. On admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement;

  3. On the purchase of medicines in all drugstores;

  4. On medical and dental services including diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans and blood tests, and professional fees of attending doctors in all government facilities, subject to the guidelines to be issued by the Department of Health (DOH), in coordination with the Philippine Health Insurance Corporation (PhilHealth);

  5. On medical and dental services including diagnostic and laboratory fees, and professional fees of attending doctors in all private hospitals and medical facilities, in accordance with the rules and regulations to be issued by the DOH, in coordination with the PhilHealth;

  6. On fare for domestic air and sea travel;

  7. On actual fare for land transportation travel; and

  8. On funeral and burial services for the death of the PWD.

PWDs are those who have long-term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others.

Republic Act No. 10754 also grants a PhP 25,000 annual income tax deduction to relatives, within the fourth civil degree of consanguinity or affinity, who are caring for PWDs.

The Implementing Rules and Regulations of Republic Act 10754 was signed on December 1, 2016.

This article does not constitute and is not intended to be legal advice. If you have any question or need any assistance, please feel free to send us an email at

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