BIR Ruling

August 25, 1971 The Charge d' Affaires Embassy of Ceylon 1836 Leveriza St. Pasay City S i r : This refers to your letter dated March 1, 1971 requesting exemption from the payment of specific taxes on your purchase of gasoline and other petroleum products from Caltex (Philippines) Inc. thru its dealer, the Motorist Haven for the official use of the Embassy cars. cdt In reply, I have the honor to inform you that this Office had always recognized exemption from taxes on the basis of reciprocity. Therefore, if your Government is extending to the Philippine Embassy thereat, including the staff thereof, the privilege of purchasing tax-free gasoline and other petroleum products, similar exemption may be given the Embassy of Ceylon in this Country. And if your Government is actually extending said privilege to the Philippine Embassy, the following procedure should be observed in the procurement of tax-free gasoline. The purchase invoice should indicate the name of the Embassy official being serviced, his car's plate number, the date of the purchase, quantity of the petroleum products purchased, and the same should be legibly signed by the purchaser and seller. At the end of every month, the Motorist Haven should forward to this Office a statement showing the total quantity of petroleum products purchased by all the Embassy officials, together with a copy of the invoices evidencing the purchases made by the Embassy. After processing the papers, an authority to replace the petroleum products purchased by the Embassy with tax-free stocks of Caltex (Philippines) Inc. may be made. acd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue