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May 9, 2019ITAD BIR RULING NO. 007-19Section 108 (B) (3), NIRC of 1997, as amended;Article 23, VCDR; Principle of ReciprocityAustralian EmbassyLevel 23, RCBC Tower 26819 Ayala Avenue1200 Makati CityGentlemen :This refers to your Note No. 151-19 dated 21 March 2019, endorsed by the Department of Foreign Affairs (DFA) requesting for the issuance of a ruling exempting from value-added tax (VAT) the lease of the following:1.  Premises used exclusively by the mission pursuant to the Vienna Convention on Diplomatic Relations (VCDR); and2.  Residential accommodations such as houses, condominiums and apartments (excluding hotel-managed buildings and full-serviced apartments) occupied by accredited Diplomatic and Consular staff of the Embassy.It is represented that based on the Australian Embassy's consultation with the Australian Taxation Office, and supported with information received by the DFA from the Philippine Embassy in Canberra, residential leases in Australia are not subject to Goods and Services Tax (GST) which is equivalent to VAT; that long-term accommodations in full-serviced apartments and hotel managed buildings are not exempt from GST; and that the DFA recommends that the same tax...