September 24, 2018
DA ITAD BIR RULING NO. 045-18
Principle of Reciprocity;
BIR Ruling No. ITAD-321-11
Embassy of Switzerland
24th Floor, Equitable Bank Tower
8751 Paseo de Roxas
P.O. Box 2068, MCPO
1260 Makati City
Gentlemen :
This has reference to your Note No. 71/2018 dated August 29, 2018 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 Embassy of Switzerland from BBB, _______________, also of the same Embassy, specifically described as follows: HESIcT
Make | Model | Color | Chassis Number | Engine Number | Plate Number |
Toyota Innova 2.5 E Dsl A/T | 2014 | Thermalyte | KUN405100582 | 2KDU406304 | _______ |
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...
