November 7, 2019
DA ITAD BIR RULING NO. 041-19
Principle of Reciprocity;
BIR Ruling No. ITAD-313-11
Embassy of Japan
2627 Roxas Boulevard
1300 Pasay City, Philippines
Gentlemen :
This has reference to your Note No. 537-19 dated October 2, 2019 referred to this Office by the Department of Finance and the Department of Foreign Affairs, requesting for the exemption from the payment of value-added (VAT) and ad valorem taxes on the local purchase of one (1) unit of motor vehicle for personal use of AAA, __________ of the Embassy of Japan, specifically described as follows:
Type of use | : Personal |
Make and Model | : Toyota RAV4 |
Model Year | : 2020 |
Chassis Number | : JMTZ13FV2KJ016304 |
Motor/Engine No. | : A25A5269182 |
Color | : White Pearl |
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...
