September 16, 2019
DA ITAD BIR RULING NO. 035-19
Principle of Reciprocity;
BIR Ruling No. ITAD-314-12
The Royal Thai Embassy
107 Thailand (Rada) Street
Legaspi Village, Makati City
Gentlemen :
This has reference to your Note No. 40001/593 dated August 19, 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 a motor vehicle for the official use of the Royal Thai Embassy, specifically described as follows:
Type of Use: | Official |
Make: | Toyota HiAce GL Grandia 2.8L DSL AT 2T-ZG-006 |
Model Year: | 2019 |
Color: | Luxury Pearl Toning |
Frame Number: | JTFPA9APXK8008162 |
Engine Number: | 1GD8464131 |
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 and ad valorem tax, which...
