March 16, 2018
DA ITAD BIR RULING NO. 011-18
Principle of Reciprocity;
BIR Ruling No. ITAD-301-11
Embassy of Canada
Levels 6-8, Tower 2, RCBC Plaza Bldg.
Ayala Avenue, Makati City
Gentlemen :
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: | Official |
Make: | Toyota HiAce GL Grandia 3.0 DSL A/T |
Model Year: | 2018 |
Color: | Silver Metallic |
Frame Number: | JTFRT13P0J8023253 |
Engine Number: | 1KD2787881 |
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 on its local purchases of...
