April 25, 2019
DA ITAD BIR RULING NO. 015-19
Principle of Reciprocity;
BIR Ruling No. ITAD-300-11
Australian Embassy
Level 23-Tower 2 RCBC Plaza
6819 Ayala Avenue Makati City 1200
Gentlemen :
This has reference to your Note No. 171/19 dated March 29, 2019 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 the official use of the Australian Embassy, specifically described as follows:
Type of Use: | Official |
Make: | Toyota HiAce Super Grandia Leather 3.0 DSL AT |
Model Year: | 2019 |
Color: | White Pearl 2T |
Frame Number: | JTFRT13P0K8033119 |
Engine Number: | 1KD2846796 |
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...
