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September 3, 2018DA ITAD BIR RULING NO. 035-18Principle of Reciprocity;BIR Ruling No. ITAD-372-12Embassy of the Russian Federation1245 Acacia Road, Dasmariñas VillageMakati CityGentlemen :This has reference to your Note No. 428 dated August 1, 2018 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 the official use of the Embassy of the Russian Federation, specifically described as follows: HTcADC Type of Use:OfficialMake:Toyota Hiace S.G. LXV 3.0L Dsl A/TModel Year:2018Color:White PearlFrame Number:JTFST23P1J0037166Engine Number:1KD2812759 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...