May 25, 2018
DA ITAD BIR RULING NO. 018-18
Principle of Reciprocity;
BIR Ruling No. ITAD-372-12
Embassy of the Russian Federation
1245 Acacia Road, Dasmariñas Village
Makati City
Gentlemen :
This has reference to your Note No. 248-n dated May 3, 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 (VAT) and ad valorem taxes on the local purchase of a motor vehicle for the official use of the Embassy of the Russian Federation, specifically described as follows: HTcADC
Type of Use: | Official |
Make: | Honda Civic 1.8 E CVT |
Model Year: | 2018 |
Color: | Cosmic Blue Metallic |
Frame Number: | MRHFC6630JT020405 |
Engine Number: | R18Z16651313 |
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 goods and...
