VAT Ruling No. 014-97

February 5, 1997 VAT RULING NO. 014-97 Sec. 100; 160-97; 014-97 Embassy of the Union of Myanmar Metro Manila, Philippines Attention: Thita Saw Third Secretary Gentlemen : This refers to your fax message dated January 21, 1997 requesting for exemption from value added tax (VAT) on the purchase of one (1) unit locally purchased personal computer, more particularly an AST Advantage 812 with unit price of Php 44,995.00 from Abenson, Inc., for use of your embassy. prll 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 goods and services. "xxx xxx xxx" the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption from the value added tax (VAT) on its 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 100 (a) and 102 (a), both of the National Internal Revenue Code as amended by Republic Act No. 7716. However, under the principle of reciprocity, this Office may grant exemption to the Embassy of the Union of Myanmar 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 Filipino Embassy personnel on their purchase of goods and services in your country. cdta Hence, your request for exemption from the value added tax (VAT) on the local purchase of one (1) unit personal computer, more particularly an AST Advantage 812 with unit price of Php 44,995.00 from Abenson, Inc., for the use of your embassy is hereby granted. Very truly yours, ALICIA L. TOMACRUZ Head Revenue Executive Assistant Chairman, VAT Review Committee