July 28, 1999
ITAD RULING NO. 013-99
Section 106 Section 108
206-93
The People's Bureau of the Great Socialist
People's Libyan Arab Jamahiriya
Makati City, Philippines
Gentlemen :
This refers to your Note No. 043-97 dated September 12, 1997, which was referred to this Office by the Department of Foreign Affairs requesting for the issuance of a Tax Exemption Certificate for the official use of your Office. prcd
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
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the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from value-added tax (VAT) on its local purchase of goods and services. In other words, purchase by the People’s Bureau of the Great Socialist People’s Libyan Arab Jamahiriya of goods and/or services shall be subject to the value-added tax prescribed under Section...
