January 9, 2006
DA ITAD BIR RULING NO. 001-06
Sec 106 & 108 of the Tax Code 1997;
Article 34, Vienna Convention on Diplomatic Relations;
ITAD Ruling No. 165-03
Embassy of the United States of America
Roxas Boulevard
Manila
Gentlemen :
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/T |
| Model Year: | 2005 |
| Color: | Graying Brown |
| Engine Number: | 1KD-9334697 |
| Chassis Number: | MROFZ29G8-01514296 |
| Make: | Mitsubishi Adventure GLS Sport Gas A/T |
| Model Year: | 2005 |
| Color: | Aspen White |
| Engine Number: | 4G63A-C3750 |
| Chassis Number: | PAEVB2RX15B000589 |
In reply, please be informed that Article 34 of the Vienna Convention on Diplomatic Relations reads:
"ARTICLE 34
A 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...
