October 10, 2019
DA ITAD BIR RULING NO. 039-19
Principle of Reciprocity;
BIR Ruling No. ITAD-294-11
Embassy of the Republic of Indonesia
185 Salcedo St. Legaspi Village
Makati City
Gentlemen :
This has reference to your Note No. PK/1185/V/2019 dated May 6, 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 Embassy the Republic of Indonesia, specifically described as follows:
Type of Use: | Personal |
Make: | Ford Explorer 3.5L Sport 4x4 A/T |
Model Year: | 2018 |
Frame Number: | 1FM5K8GT7JGB22731 |
Engine Number: | JGB22731 |
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,...
