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May 24, 2019DA ITAD BIR RULING NO. 018-19Principle of Reciprocity;BIR Ruling No. ITAD-337-12Embassy of Spain7/F Tower 1, RCBC PlazaAyala Avenue1226, Makati CityGentlemen :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:OfficialMake:Toyota Fortuner 2.8 4x4 V DSL ATModel Year:2019Color:Gray MetallicFrame Number:MHFHA3FSXK0568452Engine Number:1GD4645867 In reply, please be informed that Article 34 of the Vienna Convention on Diplomatic Relations reads:"ARTICLE 34A 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...