November 8, 2019
DA ITAD BIR RULING NO. 043-19
Principle of Reciprocity;
BIR Ruling No. ITAD-400-12
Embassy of the Socialist Republic of Vietnam
670 Pablo Ocampo St.,
Malate, Manila, Philippines
Gentlemen :
This has reference to your Note No. 195/VNCH/2019 dated October 2, 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 Embassy of the Socialist Republic of Vietnam, specifically described as follows:
Type of Use: | Official |
Make: | Toyota Fortuner 2.4 4x2 G DSL AT |
Model Year: | 2019 |
Color: | Avant Garde Bronze Metallic |
Frame Number: | MHFJB8GS9K1570388 |
Engine Number: | 2GD4682316 |
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...
