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September 24, 2018DA ITAD BIR RULING NO. 045-18Principle of Reciprocity;BIR Ruling No. ITAD-321-11Embassy of Switzerland24th Floor, Equitable Bank Tower8751 Paseo de RoxasP.O. Box 2068, MCPO1260 Makati CityGentlemen :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 MakeModelColorChassis NumberEngine NumberPlate NumberToyota Innova 2.5 E Dsl A/T2014ThermalyteKUN4051005822KDU406304_______ In reply, please be informed that Article 34 of the Vienna Convention on Diplomatic Relations reads:"ARTICLE 34A 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...