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May 28, 2019DA ITAD BIR RULING NO. 019-19Principle of Reciprocity;BIR Ruling No. ITAD-294-11Embassy of the Republic of Indonesia185 Salcedo St. Legaspi VillageMakati CityGentlemen :This has reference to your Note No. PK/1140/V/2019 dated May 6, 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 personal use of AAA, __________ of the Embassy the Republic of Indonesia, specifically described as follows:  Type of Use:PersonalMake:Ford Explorer 3.5L Sport 4x4 A/TModel Year:2019Frame Number:1FM5K8GT7JGB22731Engine Number:JGB22731 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...