September 6, 2019
ITAD BIR RULING NO. 023-19
Principle of Reciprocity; Revenue Memorandum Order No. 10-2019
Embassy of Canada
Level 6-8, RCBC Plaza, Tower II 1200
6819 Ayala Avenue
1227 Makati City
Gentlemen :
This refers to your Note No. 19-155 dated 16 July 2019, indorsed by the Department of Foreign Affairs, Office of Protocol (DFA-OP), requesting for the renewal of the Value-Added Tax Exemption Certificates (VEC) 1 of your diplomatic personnel in connection with the local purchase of goods and services for their personal use. caITAC
In reply, please be informed that while the Vienna Convention on Diplomatic Relations of 1961 exempts diplomatic missions (i.e., embassies and consulates) and their diplomatic agents from all dues and taxes, personal or real, national, regional or municipal, they are nevertheless subject to the indirect taxes of a kind which are normally incorporated in the price of goods or services (e.g., VAT).
Nevertheless, under the principle of reciprocity, this Office may grant tax privileges to a foreign embassy and to its members on their local purchases of goods and services, provided that they can submit to the Commissioner...
