BIR Ruling

September 29, 1966 Mr. Jean Belloir Counselor of the Embassy Embassy of France Manila S i r : This refers to your letter dated August 8, 1966 requesting exemption from the payment of specific taxes on your purchase of gasoline and lubricants at the Shell gasoline station situated at the corner of Taft Avenue and Dagonoy Street. 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 you can furnish us with evidence that your Government is extending to the Philippine Embassy thereat, including the staff thereof, the privilege of purchasing tax-free gasoline and lubricants, similar exemption may be given the Embassy of France in this country. However, even if you qualify for exemption on the basis of reciprocity, you may enjoy the privilege only by purchasing untax-paid stocks of the producers of the gasoline and oils. As gasoline sold by gasoline stations are taxpaid, you will not be able to enjoy the privilege of tax exemption with respect thereto. It is therefore advised that should you qualify for tax exemption, all your purchases be from stocks which are not yet taxpaid. In other words, you should purchase directly from the producer of the gasoline and oils. cdll Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue