n\a

January 9, 2006DA ITAD BIR RULING NO. 001-06Sec 106 & 108 of the Tax Code 1997;Article 34, Vienna Convention on Diplomatic Relations;ITAD Ruling No. 165-03Embassy of the United States of AmericaRoxas BoulevardManilaGentlemen :This has reference to your Note No. 1510 dated November 18, 2005, referred to this Office by the Department of Finance (DOF) and the Department of Foreign Affairs (DFA), requesting for the exemption from payment of value-added tax (VAT) on the purchase of two (2) locally-assembled motor vehicles, for the official use of the Embassy of the United States of America, specifically described as follows:Make:Toyota Hi-Lux G 3.0 A/TModel Year:2005Color:Graying BrownEngine Number:1KD-9334697Chassis Number:MROFZ29G8-01514296Make:Mitsubishi Adventure GLS Sport Gas A/TModel Year:2005Color:Aspen WhiteEngine Number:4G63A-C3750Chassis Number:PAEVB2RX15B000589In reply, please be informed that Article 34 of the Vienna Convention on Diplomatic Relations reads:"ARTICLE 34A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal, except:(a) indirect taxes of a kind which are normally incorporated in the price of goods or services;xxx xxx xxx"Thus, the tax exemption privilege of an Embassy and/or its...