Philippines Tax Agency Issues Ruling on Austrian Embassy’s Request for VAT Exemption on Purchases

The Philippine Bureau of Internal Revenue Feb. 25 issued BIR Ruling No. ITAD-005-25, on the Austrian Embassy’s request for a VAT exemption on the purchase of goods and services. The ruling includes that: 1) the Austrian Embassy and its diplomatic personnel in the Philippines are entitled to VAT exemption privileges on the purchase of goods and services through refunds, and not at the point-of-sale (POS); 2) the actual refund will be based on actual purchases, supported by invoices, and subject to the 2,900 euro (US$3,308) maximum annual allowable amount; and 3) the POS VAT exemption applies to the local purchase ...