Embassy of Romania

April 18, 2022 ITAD BIR RULING NO. 009-22 Principle of Reciprocity; RMO No. 10-2019, as amended by RMO No. 41-2020 Embassy of Romania 6th Floor, G.C. Corporate Plaza 150 Legaspi Street 1229 Makati City Gentlemen : This refers to the Value-Added Tax (VAT) exemption on the local purchase of goods and services of the Embassy of Romania 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 24, 2022. In connection thereto, 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 Romania, the Philippine Embassy (PE) in Budapest, Hungary also exercises jurisdiction over Romania. The PE, its diplomatic and non-diplomatic personnel (including their dependents) in Budapest enjoy VAT exemption privileges through reimbursement/refund , subject to the following limitations: 1. Restaurant services and other public catering services shall only be recognized as official if attended to by at least ten (10) invited guests, as certified by the head of the diplomatic mission. 2. As to the embassy personnel, the maximum annual amount of VAT that can be refunded is 300,000 Forint (or Php48,000). Based on the foregoing, this Office is of the opinion as it hereby rules that, applying the principle of reciprocity, the Embassy of Romania, its diplomatic and non-diplomatic personnel (including their dependents) in the Philippines are entitled to the same VAT exemption privileges through reimbursement/refund , and not through point-of-sale basis. Accordingly, upon the expiration of their respective VAT Certificates, the Embassy of Romania, its diplomatic and non-diplomatic personnel (including their dependents) 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. This ruling amends and supersedes BIR Ruling No. ITAD-361-12 dated October 22, 2012. Very truly yours, CAESAR R. DULAY Commissioner of Internal Revenue By: (SGD.) MARISSA O. CABREROS Deputy Commissioner Legal Group Officer-in-Charge