October 16, 2018
DA ITAD BIR RULING NO. 047-18
Principle of Reciprocity;
BIR Ruling No. ITAD-372-12
Embassy of the Russian Federation
1245 Acacia Road, Dasmariñas Village
Makati City
Gentlemen :
This has reference to your Note No. 548-n dated September 17, 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 local purchase of a motor vehicle for the official use of the Embassy of the Russian Federation, specifically described as follows: cDHAES
Type of Use: | Official |
Make: | Toyota Camry 2.5 G AT |
Model Year: | 2018 |
Color: | White Pearl |
Frame Number: | MR053AK50J9000683 |
Engine Number: | 2AR2012323 |
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 valorem tax, which are indirect...
