BIR Ruling [DA-538-98]

December 1, 1998 BIR RULING [DA-538-98] Embassy of France 16th Floor, Pacific Star Bldg. cor. Gil Puyat & Makati Sts. Makati City Attention: Mr . Franck Simaer Consul Gentlemen : This refers to your faxed letter dated November 18, 1998, requesting for a certificate of tax exemption on your local purchases of goods and services. It appears that under BIR Ruling No. 144-94 dated September 21, 1994, the Embassy of France including its personnel was granted tax exemption on their local purchases of goods and selected services or rental of real properties used as office space or for official purposes, provided it can submit a copy of the special legislation or international agreement showing that the Government of the Republic of France also grants similar exemption to the Philippine Embassy and its personnel on their purchases of goods and services in your territory. In compliance thereto, you have assured this Office that the French Government grants exemption from taxes to the diplomatic Missions in Paris for their purchase of office furniture, equipment and supplies under Paragraph 111 n. 1 of the French Manual on tax Privileges. Moreover, as per updated list submitted by the Department of Foreign Affairs on September 25, 1998, the Embassy of France is included among the list of diplomatic missions entitled to VAT exemptions in the Philippines on the basis of reciprocity. Accordingly, your aforesaid request for exemption from VAT on your local purchases of goods and services is hereby granted. The person/s making the exempt sale of goods/services shall not bill your embassy the 10% VAT because the said transaction is exempt from VAT pursuant to Section 109 (g) of the Tax Code of 1997. cdlex Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)