ITAD Ruling No. 057-00
ITAD Ruling No. 057-00 • Bureau of Internal Revenue (BIR) Issuances • International Tax Affairs Division (ITAD) Rulings • Apr 7, 2000
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April 7, 2000 ITAD RULING NO. 057-00 Sec. 106 Sec. 108 ITAD 1-99 Embassy of the Republic of Indonesia Metro Manila, Philippines Attention: Mr . Yudhistiranto Sungadi Counsellor, Political Department Gentlemen : This refers to your letter dated February 01, 2000 requesting for exemption from value-added tax (VAT) on the purchase of one (1) unit of 2000 HONDA CIVIC LXI, with Chassis no. PADEK3520YV-203114 and Motor/engine No. P6DD1-P503111, for the personal use of Yudhistiranto Sungadi, Embassy of the Republic of Indonesia. cdlex In reply, please be informed that pursuant to Article 34 of the Vienna Convention on Diplomatic Relations, pertinent portion of which reads: "Article 34 "A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal, except: "(a) indirect taxes of a kind which are normally incorporated in the price of the goods and services; xxx xxx xxx" the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from value-added tax (VAT) on their local purchases of goods and services. In other words, purchases by that Embassy of goods and/or services shall be subject to the value-added tax prescribed under Sections 106 and 108, both of the National Internal Revenue Code of 1997. However, under the principle of reciprocity, this Office may grant exemptions to the Embassy of the Republic of Indonesia or its personnel on their local purchases of goods and/or services it appearing from the list submitted by the Department of Foreign Affairs that your Government allows similar exemption to Philippine Embassy personnel on their purchase of goods and services in your country. Hence, the local purchase of one (1) unit of 2000 HONDA CIVIC LXI, with Chassis No. PADEK3520YV-203114 and Motor/engine No. P6DD1-P503111, for the personal use of Mr. Yudhistiranto Sungadi is exempt from VAT. ( ITAD Ruling 1-99 dated June 24, 1999) cdlex Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal and Enforcement Group
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