August 6, 1999
ITAD RULING NO. 015-99
Sec. 106 Sec. 108
Embassy of Israel
23rd Floor Trafalgar Plaza
105 H.V. dela Costa Street
Salcedo Village, Makati City
Gentlemen :
This refers to your letter dated April 14, 1999 which was referred to this Office by the Department of Foreign Affairs relative to your request for exemption from the value-added tax (VAT) on your local purchases of goods and services in the Philippines. LexLib
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 Cdpr
"xxx xxx xxx"
the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from the value-added tax (VAT) on its local purchases of goods and services. In other words, purchases by that Embassy of goods and/or services shall be subject to the value-added tax prescribed under Sections 106 and...
