August 20, 2019
DA ITAD BIR RULING NO. 032-19
Principle of Reciprocity;
BIR Ruling No. ITAD-372-12
Embassy of the Russian Federation
1245 Acacia Road, Dasmariñas Village
Makati City
Attention: AAA
__________
Gentlemen :
This refers to Note Nos. 370-n and 369-n both dated 22 July 2019 referred to this Office by the Department of Finance (DOF) and the Department of Foreign Affairs (DFA), requesting for exemption from payment of value-added tax (VAT) and ad valorem tax on the local purchase of two (2) motor vehicles for the official use of the Embassy of the Russian Federation, specifically described as follows:
Make: | 2019 Toyota Fortuner 2.4 4x2 G DSL A/T | 2019 Toyota Camry 2.5 V A/T |
Motor/Engine No.: | 2GD4675649 | 2AR2167134 |
Frame/Chassis No.: | MHFJB8GS9K1570293 | MR2BF3HK5K4003642 |
Color: | Phantom Brown Metallic | Platinum White Pearl |
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 goods or services; x x x." (Underscoring supplied)
Thus, the tax exemption privilege of an Embassy and its diplomatic agents...
