July 17, 2019
DA ITAD BIR RULING NO. 026-19
Principle of Reciprocity;
BIR Ruling No. ITAD-347-12
The British Embassy
120 Upper Mckinley Road Mckinley Hill
1634 Taguig City
Gentlemen :
This has reference to your Notes No. 19-133 and 19-134 dated June 25, 2019, respectively, 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 two (2) units of motor vehicle for the official use of the British Embassy, specifically described as follows:
Make | Year | Color | Frame Number | Engine Number |
Ford Everest 3.2L 4x4 A/T Titanium Plus | 2018 | Meteor Grey | MNCAXXMAWAJT24111 | P5AT2627907 |
Ford Everest 3.2L 4x4 A/T Titanium Plus | 2018 | Aluminum Metallic | MNCAXXMAWAJJ34465 | P5AT2643867 |
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...
