June 29, 2018
DA ITAD BIR RULING NO. 025-18
Principle of Reciprocity;
BIR Ruling No. ITAD-292-11
Embassy of the Czech Republic
3rd Floor, Rufino Pacific Tower
6784 Ayala Avenue, Makati City
Gentlemen :
This has reference to your Note No. 1290/2018 — MANILA dated May 29, 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 one (1) unit motor vehicle for the official use of the Embassy of the Czech Republic, specifically described as follows: ATICcS
Type of Use: | Official |
Make: | Mazda CX-9 AWD 2.5L Turbo Gasoline |
Model Year: | 2018 |
Color: | Machine Gray |
Frame Number: | JM7TC4WLAJ0203382 |
Engine Number: | PY30756886 |
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...
