January 17, 2020
DA ITAD BIR RULING NO. 002-20
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. 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
Make | Model | Color | Chassis Number | Engine | Plate |
Toyota Corolla Altis 1.6 V A/T | 2012 | Gold | MR053REE104141344 | 1ZRX208133 | _______ |
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...
