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March 16, 2018DA ITAD BIR RULING NO. 011-18Principle of Reciprocity;BIR Ruling No. ITAD-301-11Embassy of CanadaLevels 6-8, Tower 2, RCBC Plaza Bldg.Ayala Avenue, Makati CityGentlemen :This has reference to your Note No. 18-027 dated February 14, 2018 referred to this Office by the Department of Finance and the Department of Foreign Affairs, requesting for the exemption from the payment of value-added tax (VAT) and ad valorem taxes on the local purchase of a motor vehicle for the official use of the Embassy of Canada, specifically described as follows: aDSIHc Type of Use:OfficialMake:Toyota HiAce GL Grandia 3.0 DSL A/TModel Year:2018Color:Silver MetallicFrame Number:JTFRT13P0J8023253Engine Number:1KD2787881 In 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 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 on its local...