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September 26, 2019DA ITAD BIR RULING NO. 037-19Principle of Reciprocity;BIR Ruling No. ITAD-347-12The British Embassy120 Upper Mckinley Road, Mckinley Hill1634 Taguig CityGentlemen :This has reference to your Note No. 19-184 dated August 22, 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 personal use of AAA, __________ of the British Embassy, specifically described as follows:  Type of Use:PersonalMake:Royal Enfield Himalayan TouringModel Year:2019Frame Number:ME3DMEFT5KK046121Engine Number:D4A5F1KE046625 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 tax, which are indirect taxes, on...