September 6, 2019
ITAD BIR RULING NO. 024-19
Principle of Reciprocity; Revenue Memorandum Order No. 10-2019
Royal Norwegian Embassy
12th Floor, Del Rosario Law Centre
21st Drive corner 20th Drive
1630 Taguig City
Gentlemen :
This refers to your request, indorsed by the Department of Foreign Affairs, Office of Protocol (DFA-OP), for the renewal of the Value-Added Tax Exemption Certificates (VEC) 1 of the Royal Norwegian Embassy and its diplomatic officials in connection with the local purchase of goods and services. ICHDca
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 of Internal Revenue...
