September 5, 2019
ITAD BIR RULING NO. 026-19
Principle of Reciprocity
Embassy of the Federal Republic of Brazil
16F Liberty Center
104 HV Dela Costa Street, Salcedo Village
Makati City
Gentlemen :
This has reference to your Note No. 055/19 dated July 15, 2019 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 Federal Republic of Brazil, specifically described as follows: cTDaEH
Type of Use: | Official |
Make: | Ford Everest 2.2L Ambiente 4x2 AT |
Model Year | 2018 |
Color: | Aluminum Metallic |
Frame Number: | MNCAXXMAWAHD63556 |
Engine Number: | P4AT2550221 |
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 from VAT and ad...
