January 17, 2020
ITAD BIR RULING NO. 015-20
Principle of Reciprocity; RMO No. 10-2019
Australian Embassy
Level 23-Tower 2, RCBC Plaza
6819 Ayala Avenue
1200 Makati City
Gentlemen :
This refers to your request dated 08 November 2019 for the issuance of a BIR Ruling on the value-added tax (VAT) exemption of the Australian Embassy, its diplomatic personnel and the qualified dependents of the latter.
In this regard, please be informed that while Article 34 of the Vienna Convention on Diplomatic Relations of 1961 exempts diplomatic agents from all dues and taxes, personal or real, national, regional or municipal, they are nevertheless subject to the indirect taxes of a kind which are normally incorporated in the price of goods or services, e.g., VAT. ICHDca
Nevertheless, under the principle of reciprocity, this Office may grant tax privileges to the embassy of a foreign state and to the members of diplomatic missions on their local purchases of goods and services, provided that they can submit to the Commissioner of Internal Revenue proof that the said foreign government allows similar tax privileges to the Philippine Embassy or its...
