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July 22, 2019DA ITAD BIR RULING NO. 027-19Principle of Reciprocity;BIR Ruling No. ITAD-372-12Embassy of the Russian Federation1245 Acacia Road, Dasmariñas VillageMakati CityGentlemen :This has reference to your Notes No. 302-n and 303-n both dated June 28, 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 two (2) units of motor vehicle for the official use of the Embassy of the Russian Federation, specifically described as follows: HTcADC MAKEYEARCOLORFRAME NUMBERENGINE NUMBERMazda CX-3 2.0L 2WD AT Pro2018Eternal BlueJM7DK2W7AJ1310641PE21009573Honda HR-V 1.8 E CVT2019Taffeta WhiteMRHRU5830KP020094R18ZF3757412 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...