Embassy of the Kingdom of Morocco

March 30, 2022 ITAD BIR RULING NO. 005-22 Principle of Reciprocity; Revenue Memorandum Order (RMO) No. 10-2019, as amended by RMO No. 41-2020 Embassy of the Kingdom of Morocco 17th Floor, Marajo Tower, 26th Street corner 4th Avenue Bonifacio Global City 1634 Taguig City Gentlemen : This refers to the Value-Added Tax (VAT) exemption on the local purchase of goods and services of the Embassy of the Kingdom of Morocco and its qualified personnel in the Philippines, as referred to this Office by the Department of Foreign Affairs, Office of Protocol (DFA-OP). 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, nevertheless, subject to the indirect taxes of a kind which are normally incorporated in the price of goods or services ( e.g. , VAT). However, on the basis of reciprocity, this Office may confirm the VAT exemption privileges granted 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. Based on the information received from the DFA-OP in its letter dated February 21, 2022 and the DFA Matrix of VAT Privileges Enjoyed by the Philippine Foreign Service Posts as of February 18, 2022, the Philippine Embassy and its qualified diplomatic personnel in Rabat, Morocco enjoy VAT exemption privileges on a reimbursement/refund basis. The turnaround time for receiving claims for refund is two (2) months from the date of receipt of the application. The VAT exemption privileges cover purchases of goods and services, to wit: GOODS EMBASSY DIPLOMATIC PERSONNEL 1 Household items Household items 2 Office items Office items 3 Television and Audio Television and Audio 4 Telephone Telephone 5 Multimedia items Multimedia items 6 Alarm System Alarm System 7 Food products Food products 8 Books and Periodicals Books and Periodicals 9 Spare parts for exempt goods Spare parts for exempt goods 10 Furniture and fitting out works Furniture and fitting out works 11 Vehicle and vehicle insurance Vehicle and vehicle insurance 12 Gardening tools and equipment Personal items (optical needs, clothing, shoes, suitcases, bags and accessories, cosmetics and perfume, sports and leisure, jewelry and watch, et al.) SERVICES EMBASSY DIPLOMATIC PERSONNEL 1 Provision of services for exempt goods Provision of services for exempt goods 2 Costs for water, electricity and gas consumption Costs for water, electricity and gas consumption 3 Telephone and cable subscription Telephone and cable subscription 4 Lawyer and notary services Lawyer and notary services 5 Training services Training services 6 Moving services Moving services 7 Construction/renovation work of official immovable property 8 Catering services (restaurant or caterer) 9 Rental for official use 10 Participation in fairs and seminars 11 Services of interpreters and translators 12 Ticketing and travel agencies 13 Hotel services The local purchase or importation of vehicles, alcoholic beverages, cigarettes, and fuels are subject to limitations or ceiling tax exemption based on quantity, to wit: VEHICLES o Staff Holder of the CD (Ambassador, Diplomats, and Their Families) or CC Card (Consular Officials with Diplomatic Passport and Their Families) For Single: One (1); For Married: Two (2) o Administrative and Technical Staff One (1) within six (6) months from the date of arrival CIGARETTES AND CIGAR (Quota is per quarter) o Ambassador 60 cartridges (200u)/20 boxes of cigars o Staff Holder of the CD and CC Card 30 cartridges (200u)/10 boxes of cigars ALCOHOLIC BEVERAGES (Quota is per quarter) o Ambassador 90 bottles of alcohol, 150 bottles of wine, and 40 cases of beer o Staff Holder of the CD and CC Card 50 bottles of alcohol, 80 bottles of wine, and 35 cases of beer FUEL (Quota is per quarter) o Official car (1800L) o Diplomatic and Consular (900L) o Administrative and Technical Staff (450L) Considering the efficient processing of VAT reimbursement/refund claims of the Philippine Embassy and its diplomatic personnel in Morocco, the Philippine Embassy strongly recommended to this Bureau the grant of VAT exemption privileges on local purchases of goods and services to the Embassy and its qualified diplomats here in the Philippines through point-of-sale mechanism . In view of the foregoing, this Office is of the opinion as it hereby rules that the Embassy of the Kingdom of Morocco and its diplomatic personnel in the Philippines are entitled to VAT exemption privileges on their local purchase of goods and services, subject to the above limitations, at point-of-sale . Accordingly, the Embassy and its qualified diplomatic personnel may proceed with the application for VAT Certificates. Very truly yours, (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue