Embassy of the Russian Federation

February 13, 2020DA ITAD BIR RULING NO. 004-20Principle of Reciprocity;BIR Ruling No. ITAD-372-12Embassy of the Russian Federation1245 Acacia Road, Dasmariñas VillageMakati City This has reference to your Note No. 17-n dated January 11, 2020 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: CAIHTE Type of Use:OfficialMake:Mazda CX-5 2.0Model Year:2020Color:Snowflake White PearlFrame Number:PP1KFA174LM100037Engine Number:PE50228967 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 include exemption from VAT and ad valorem tax, which are...