Embassy of the Russian Federation

January 17, 2020DA ITAD BIR RULING NO. 002-20Principle of Reciprocity;BIR Ruling No. ITAD-372-12Embassy of the Russian Federation1245 Acacia Road, Dasmariñas VillageMakati CityGentlemen :This has reference to your Note No. 673-n dated December 16, 2019 referred to this Office by the Department of Finance and the Department of Foreign Affairs (DFA), requesting exemption from the payment of value-added (VAT) and ad valorem taxes on the local purchase from AAA, an employee of the Embassy of the Russian Federation, of a previously owned and tax-exempt motor vehicle for personal use of BBB, an employee of the same Embassy, specifically described as follows: aScITE MakeModelYearColorChassis NumberEngineNumberPlateNumberToyota Corolla Altis 1.6 V A/T2012GoldMR053REE1041413441ZRX208133_______ 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 its diplomatic agents does not...