May 16, 2018
DA ITAD BIR RULING NO. 017-18
Principle of Reciprocity;
BIR Ruling No. ITAD-372-12
Embassy of the Russian Federation
1245 Acacia Road, Dasmariñas Village
Makati City
Attention: AAA
_______________
Gentlemen :
This refers to your Note No. 217 dated 20 April 2018 referred to this Office by the Department of Finance (DOF) and the Department of Foreign Affairs (DFA), requesting for exemption from payment of value-added tax (VAT) and ad valorem tax on the local purchase of a motor vehicle for the official use of the Embassy of the Russian Federation, specifically described as follows: ATICcS
Type of Use: | Official |
Make: | 2018 Honda CR-V 2.0 S CVT |
Motor/Engine No.: | R20ZA1101482 |
Frame/Chassis No.: | MRHRW3830JP020606 |
Color: | Dark Olive Metallic |
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; x x x." (Underscoring supplied)
Thus, the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from VAT and ad valorem which...
