October 7, 2019
DA ITAD BIR RULING NO. 038-19
Principle of Reciprocity;
BIR Ruling No. ITAD-300-11
Australian Embassy
Level 23 — Tower 2 RCBC Plaza
6819 Ayala Avenue, Makati City 1200
Gentlemen :
This has reference to your Note No. 416/19 dated September 5, 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 purchase of a previously owned and tax exempt motor vehicle for personal use of AAA, __________ of the Australian Embassy from BBB, __________, also of the same Embassy, specifically described as follows:
Make | Model Year | Color | Chassis Number | Engine Number | Plate Number |
Honda CRV | 2005 | Beige | PADRD47405V300491 | PNKD24-5300497 | 0000 |
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...
