RMO No. 22-2004: Amends RMO No. 81-99 relative to the issuance of VAT Exemption Certificate/Identification Card to qualified foreign embassies and their qualified personnel

Summary

RMO No. 22-2004 amends RMO No. 81-99 on issuing the VAT Exemption Certificate (VEC) and VAT Exemption Identification Card (VEIC) to qualified foreign embassies, their qualified personnel and dependents.

Key points

1. Reciprocity basis. The BIR may grant VAT exemption on local purchases of goods and services when the Department of Foreign Affairs list or endorsement shows the embassy’s government gives similar exemption to Philippine Embassy personnel.
2. What the VEC and VEIC are. A VEC certifies that the named embassy or person is exempt from VAT on purchases of goods and services. A VEIC may be issued in place of a VEC to qualified personnel and dependents, subject to added procedures.
3. Motor vehicles. A separate ruling must be secured for VAT and/or ad valorem tax exemption on a motor vehicle purchase.
4. Validity. The first VEC is effective for 2 years from issue and renewable every 2 years, unless sooner revoked or until the grantee’s term of office, and any dependents’ status, ends. Processing procedures are specified in the Order.

Who is affected

• Qualified foreign embassies
• Qualified embassy personnel and their dependents

Deadlines and effectivity

• Initial VEC validity: 2 years from date of issue
• Renewal: every 2 years thereafter

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.