Embassy of Ireland

January 6, 2023 ITAD BIR RULING NO. 001-23 Principle of Reciprocity Embassy of Ireland 70 Jupiter Street, Bel Air 1 Village 1209 Makati City Gentlemen : This refers to your Note No. IRL 036 2022 dated September 22, 2022 which was indorsed by the Department of Foreign Affairs, Office of Protocol (DFA-OP) on December 9, 2022. The DFA-OP recommended that in view of the efficient processing of VAT refund claims in Ireland, the VAT exemption privileges of the Embassy of Ireland (the Embassy) be shifted from refund/reimbursement to point-of-sale basis. In reply, please be informed that while the Vienna Convention on Diplomatic Relations of 1961 exempts diplomatic missions ( i.e. , embassies and consulates) and their diplomatic agents from all dues and taxes, personal or real, national, regional or municipal, they are, however, subject to the indirect taxes of a kind which are normally incorporated in the price of goods or services ( e.g. , VAT). Nevertheless, under the principle of reciprocity, this Office may grant tax privileges to a foreign embassy and to its members on their local purchases of goods and services, provided that they can submit to the Commissioner of Internal Revenue proof that the foreign government of the concerned embassy allows similar tax privileges to the Philippine Embassy or its personnel on purchases of goods or services in their country. In the Certification dated September 22, 2022, the Embassy confirmed that the Government of Ireland accords tax exemption privileges to the accredited Diplomatic Missions and its Diplomatic and Administrative & Technical staff by way of VAT refund or prior exemption. Eligible for VAT refund/exemption are the purchases of the following goods and services: HTcADC For the Embassy: Goods Services Motor vehicle; Petrol and diesel; Heating oil; Garden plants/fertilizer/soil, etc.; Business goods (office equipment including stationery and newspapers; security and fire prevention equipment); Household goods (furniture; textile products, e.g. , curtains, drapes, bed linen, table linen and towels; kitchen appliances; electrical equipment; televisions (TV)/video recorders/camcorder, cameras and camera equipment); Hi-Fi equipment; and Computers and business/educational software. Car service for official embassy vehicle; Construction, maintenance, decoration or repair cost to the Chancery and all associated legal costs, architect fees, professional fees/cost etc.; Hotel costs for official business ( e.g. , hire of hotel room and necessary equipment for official entertainment by the Embassy, except hotel costs incurred outside of official business, like holidays, weekend getaways, etc.); Hire of catering services/providers/tables/chairs/ glassware/cutlery/equipment etc. for official Embassy functions); Advertising for staff ( i.e. , media costs); Courier service for official Embassy use; Hire and maintenance of office equipment; Installation and maintenance of security and fire prevention equipment; Cost of cleaning services; Utilities (electricity, gas, Cable TV, telephone bills including mobile phones, and internet fees); and Hire, maintenance, transport and storage of all business and household goods. For the Diplomatic Staff Motor vehicle; Petrol and diesel; Heating oil; Garden plants/fertilizer/soil, etc. (for the Ambassador's residence only) Business goods (office equipment including stationery and newspapers; security and fire prevention equipment); Household goods (furniture; textile products, e.g. , curtains, drapes, bed linen, table linen, towels; kitchen appliances; electrical equipment; TV/video recorders/camcorder, cameras and camera equipment; Hi-Fi equipment; and Computers and business/educational software. Construction, maintenance, decoration or repair cost to the residence of diplomatic staff; Hotel/bed & breakfast accommodation costs, i.e. , after arrival in the country and awaiting locating accommodation, except its bill on non-accommodation components, e.g. , food, phone calls, alcohol, etc.; and Cost of cleaning services (for the Ambassador's residence only) ; Utilities for the Ambassador's residence only (electricity, gas, Cable TV, telephone bills including mobile phones, and internet fees); and Hire, maintenance, transport and storage of all business and household goods. For the Administrative and Technical Staff Motor vehicle; Business goods (office equipment including stationery and newspapers; security and fire prevention equipment); Household goods (furniture; textile products, e.g. , curtains, drapes, bed linen, table linen, towels; kitchen appliances; electrical equipment; TV/video recorders/camcorder, cameras and camera equipment); Hi-Fi equipment; and Computers and business/educational software. Construction, maintenance, decoration or repair cost to residence of administrative and technical staff; Hotel/bed & breakfast accommodation costs, i.e. , after arrival in the country and awaiting locating accommodation, except its bills on non-accommodation components, e.g. , food, phone calls, alcohol, etc.; Installation and maintenance of security and fire prevention equipment; Hire, maintenance, transport and storage of all business and household goods. Based on the foregoing, and considering the efficient processing of VAT refund claims in Ireland, which is within six (6) weeks from submission to the actual release of reimbursements, this Office is of the opinion as it hereby rules that, applying the principle of reciprocity, the Embassy of Ireland and its qualified diplomatic, administrative and technical personnel in the Philippines are entitled to the same VAT exemption privileges at point-of-sale subject to the aforementioned limitations. Accordingly, the Embassy of Ireland and its qualified personnel shall be issued with VAT Certificates for their local purchase of goods and services in the Philippines. This ruling amends and supersedes BIR Ruling No. ITAD-006-22 dated March 31, 2022. CAIHTE This Bureau avails itself of this opportunity to renew to the Embassy of Ireland assurances of its highest consideration. Very truly yours, (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue