Embassy of the Federal Republic of Nigeria

August 30, 2023 DA ITAD BIR RULING NO. 031-23 Principle of Reciprocity; BIR Ruling No. ITAD-100-12 Embassy of the Federal Republic of Nigeria 2211 Paraiso St., Dasmarias Village 1221 Makati City Attention: Mr. Adeshina Edward Oloje Minister Counsellor/Head of Chancery Gentlemen : This refers to your Note No. NE/01/07/2023 dated July 7, 2023 referred to this Office by the Department of Finance and the Department of Foreign Affairs (DFA), requesting for the exemption from the payment of value-added (VAT) and ad valorem taxes imposed on the purchase of a second-hand imported motor vehicle for the personal use of Mr. Leonard Ekhasomhi Asekhame, Counsellor of the Embassy of the Federal Republic of Nigeria, from Galiya Nazirovna Ismakova of the Asian Development Bank, specifically described as follows: ETHIDa MAKE YEAR FRAME NUMBER ENGINE NUMBER Nissan Rogue 2009 JN8AS58T49W040204 649046AQR25 In reply, please be informed that Article 34 of the Vienna Convention on Diplomatic Relations states that the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from VAT and ad valorem tax, which are indirect taxes, on their local purchase of goods and services, thus: " 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; xxx xxx xxx" In other words, purchases by the Embassy or its agents of goods and/or services shall, in general, be subject to the VAT and ad valorem tax under Sections 106 and 149 of the National Internal Revenue Code (NIRC) of 1997, as amended, respectively. However, applying the principle of reciprocity, this Office hereby confirms the VAT and ad valorem tax exemption of the Embassy of the Federal Republic of Nigeria and/or its personnel on their local purchase of motor vehicles since it appears from the DFA VAT Matrix dated April 5, 2023 that the Government of the Federal Republic of Nigeria allows similar exemption to the Philippine Embassy and/or its personnel on their purchase of motor vehicles in Nigeria. TIADCc In view thereof, the sale of the second-hand 2009 Nissan Rogue by Galiya Nazirovna Ismakova of the Asian Development Bank, to Mr. Leonard Ekhasomhi Asekhame, Counsellor of the Embassy of the Federal Republic of Nigeria, for the latter's personal use, continues to be exempt from VAT. It is likewise exempt from ad valorem tax under Section 9 of Revenue Regulations No. 25-2003. This ruling is issued on the basis of the facts as represented. However, if it will be disclosed upon investigation that the actual facts are different, then this ruling shall be without force and effect insofar as the herein parties are concerned. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LARRY M. BARCELO Assistant Commissioner Legal Service