June 23, 1999
ITAD RULING NO. 002-99
Sec 106
Sec 108
Embassy of the Russian Federation
Metro Manila, Philippines
Attention: Vladimir A. Proskouriakov
Third Secretary
Gentlemen :
This refers to your letter dated May 18, 1999 requesting for exemption from value added tax (VAT) on the purchase of one (1) unit locally purchased Honda City 1.3 Lxi, Model 1999 (4 door sedan, gas 1.3li. SOHC, PGM-FI, 5 speed manual transmission, 95 hp) with engine no. P3RD1-P201145 and chassis no. PAD3A 1530WV001192 for the personal use of Mr. Vladimir A. Proskouriakov, Third Secretary, Embassy of the Russian Federation.
In reply, please be informed that pursuant to Article 34 of the Vienna Convention on Diplomatic Relations, pertinent portion of which 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 cdll
"xxx xxx xxx"
the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from value added tax (VAT) on its local purchases of goods and services....
