ITAD Ruling No. 148-00

October 20, 2000 ITAD RULING NO. 148-00 VAT 143-90 World Health Organization P.O. Box 2932, UN Avenue 1000 Manila Attention: Mr . Peter R . King Supply & Administrative Officer Gentlemen : This refers to your letter dated August 29, 2000 endorsed to this Office by the Department of Finance (DOF), with favorable recommendation from the Department of Foreign Affairs (DFA), requesting for exemption from the payment of value-added tax (VAT) and ad valorem tax on the purchase of a locally produced 1999 Express Black Toyota Camry GX with chassis no. 53SK20-07000456, and engine no. 5S-4343023, for the official use of your Regional Office in Manila. In reply, please be informed that Article IV, Section 12 of the Host Agreement between the Republic of the Philippines and the World Health Organization (WHO) provides, viz: "Section 12 While the Organization will not, as a general rule, in the case of minor purchases, claim exemption from excise duties, and from taxes on the movable and immovable property which form part of the price to be paid, nevertheless, when the Organization is making important purchases for official use of property on which such duties and taxes have been charges or are chargeable, the Government of the Republic of the Philippines shall make appropriate administrative arrangements for the remission or return of the amount of duty or tax. Moreover, the WHO, being one of the specialized agencies of the United Nations (UN), shall enjoy the privileges and immunities contained in the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations adopted by the General Assembly on November 21, 1947 to which the Philippines is a member. Such privileges and immunities also include the exemption from taxation. (Article III Sections 9 & 10, Convention on the Privileges and Immunities of the United Nations) Such being the case, your request is hereby granted. The World Health Organization is entitled to exemption from VAT and ad valorem tax on the purchase of a 1999 Express Black Toyota Camry GX with chassis no. 53SK20-07000456, and engine no. 5S-4343023, for official use of its Regional Office in Manila. This tax exemption privilege is granted in lieu of the remission or return of the amount of tax due. EaCDAT It is hereby understood that this exemption applies only to vehicles purchased under the name of the World Health Organization. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group