May 24, 2019
DA ITAD BIR RULING NO. 018-19
Principle of Reciprocity;
BIR Ruling No. ITAD-337-12
Embassy of Spain
7/F Tower 1, RCBC Plaza
Ayala Avenue
1226, Makati City
Gentlemen :
This has reference to your Note No. 55/19 dated April 25, 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 Embassy of Spain, specifically described as follows: aScITE
Type of Use: | Official |
Make: | Toyota Fortuner 2.8 4x4 V DSL AT |
Model Year: | 2019 |
Color: | Gray Metallic |
Frame Number: | MHFHA3FSXK0568452 |
Engine Number: | 1GD4645867 |
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 are indirect...
