November 8, 2019
DA ITAD BIR RULING NO. 044-19
Principle of Reciprocity;
BIR Ruling No. ITAD-053-14
Embassy of the United States of America
1201 Roxas Boulevard
Manila, Philippines 1000
Attention: AAA
_______________
Gentlemen :
This has reference to your Note No. 2285 dated October 4, 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 the official use of the Embassy of the United States of America, specifically described as follows:
Make and Model | : Toyota Fortuner 4X4 V DSL AT |
Model Year | : 2019 |
Chassis Number | : MHFHA3FS9K0568720 |
Motor/Engine No. | : 1GD4684773 |
Conduction Sticker | : P2U874 |
Color | : Black |
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...
