Embassy of Ireland

March 31, 2022 ITAD BIR RULING NO. 006-22 Principle of Reciprocity; RMO No. 10-2019, as amended by RMO No. 41-2020 Embassy of Ireland 30th Floor, Tower 2, RCBC Plaza 6819 Ayala Avenue 1200 Makati City Gentlemen : This refers to the Value-Added Tax (VAT) exemption on the local purchase of goods and services of the Embassy of Ireland and its qualified personnel in the Philippines, as referred to this Office by the Department of Foreign Affairs, Office of Protocol (DFA Protocol) in its letter dated March 21, 2022. 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, this Office may confirm the tax privileges on the local purchases of goods and services of a foreign embassy and its members on the basis of reciprocity, 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. As per the above letter of the DFA Protocol, while the Philippines has no diplomatic post in Ireland, there is the Philippine Embassy (PE) in London which exercises jurisdiction over Ireland. The PE, its diplomatic and non-diplomatic personnel in London enjoy VAT exemption privileges through reimbursement/refund , subject to the following limitations: 1. The Embassy and its diplomatic personnel are exempt from VAT on the following purchases and importations: a. Purchases of alcoholic liquor, tobacco and perfume from excise warehouses (subject to quotas); b. Importation, acquisition, withdrawal from customs warehouse or purchase in the UK of motor vehicles (subject to quotas); c. Purchases in excess of 1000 (PhP68,000.00) of high-grade UK manufactured furniture and furnishings for the official residence or for the reception rooms of the Embassy only; and d. Purchase of petroleum products; e. Importation of goods for official or personal use of diplomatic personnel, including the use of members of their family forming part of their household, subject to quotas; f. Importation of personal and household effects of administrative and technical staff of the mission, including a motor vehicle, during a period of six (6) months from date of first arrival. 2. There is no VAT exemption for the purchase of official mission premises, which includes the official residence, and for the lease of accommodation for diplomatic and non-diplomatic personnel. 3. Claims must be restricted to purchases made not more than one (1) year prior to the date of application for refund of VAT. Receipts are required to be under the name of the claimant. Based on the foregoing, this Office is of the opinion as it hereby rules that, applying the principle of reciprocity, the Embassy of Ireland, its diplomatic and non-diplomatic personnel in the Philippines are entitled to the same VAT exemption privileges through reimbursement/refund , and not through point-of-sale basis. Accordingly, the Embassy of Ireland, its diplomatic and non-diplomatic personnel may proceed to secure the necessary VAT reimbursement/refund on their purchases of goods and services in the Philippines subject only to the aforementioned limitations, and following the guidelines set forth in Revenue Memorandum Order (RMO) No. 10-2019, as amended by RMO No. 41-2020. Very truly yours, (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue