Embassy of the Republic of Colombia

May 19, 2021 ITAD BIR RULING NO. 012-21 Principle of Reciprocity; RMO No. 10-2019, as amended by RMO No. 41-2020 Embassy of the Republic of Colombia 14th Floor, Inoza Tower, 40th Street corner 11th Avenue Bonifacio Global City 1634 Taguig City Gentlemen : This refers to your Note No. EPHMNL 21-023 dated 26 February 2021, indorsed by the Department of Foreign Affairs, Office of Protocol (DFA-OP), requesting for a ruling on the value-added tax (VAT) exemption of the Embassy of the Republic of Colombia and its diplomatic personnel on local purchase of goods and services. TIADCc 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 indirect taxes of a kind which are normally incorporated in the price of goods or services ( e.g. , VAT). Nevertheless, on the basis 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 a 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 Indorsement of the DFA-OP dated 02 March 2021, the Government of the Republic of Colombia accords VAT exemption privileges to accredited foreign missions and diplomatic personnel in Colombia by way of reimbursement/refund . While the Philippines has no diplomatic post in Colombia, there is the Philippine Embassy in Brasilia, Brazil which has concurrent jurisdiction over Colombia. Based on the foregoing and applying the principle of reciprocity which was reiterated in Revenue Memorandum Order (RMO) No. 10-2019, as amended by RMO No. 41-2020, this Office is of the opinion as it hereby rules that the Embassy of the Republic of Colombia and its qualified diplomatic personnel in the Philippines are entitled to the same VAT exemption privileges by way of reimbursement/refund , and not through point-of-sale basis. Accordingly, the Embassy of the Republic of Colombia and its diplomatic personnel, may proceed to secure the necessary VAT reimbursement/refund on purchases of local goods and services in the Philippines following the guidelines set forth in RMO No. 10-2019, as amended by RMO No. 41-2020. Very truly yours, (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue