March 4, 2020
DA ITAD BIR RULING NO. 007-20
Principle of Reciprocity; BIR Ruling No. ITAD-313-11
Embassy of Japan
2627 Roxas Boulevard
Pasay City
Gentlemen :
This has reference to your Note No. 102-20 dated February 6, 2020 referred to this Office by the Department of Finance and the Department of Foreign Affairs (DFA), requesting for the exemption from the payment of value-added (VAT) and ad valorem taxes on the local purchase of a motor vehicle for official use of the Embassy of Japan, specifically described as follows: HTcADC
Type of Use: | Official |
Make: | Toyota Hiace GL Grandia 2.8L DSL AT |
Model Year: | 2020 |
Color: | Luxury Pearl Toning |
Frame Number: | JTFPA9AP5K8012703 |
Engine Number: | 1GD8468254 |
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 the goods and services;
xxx xxx xxx"
Thus, the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from VAT and ad valorem tax, which are indirect taxes,...
