This Article grants each Member State the authority to establish the specific conditions and provisions for tax refunds to foreign governments, international organisations, and diplomatic, consular, and military bodies. The basis for these refunds must be international treaties or the principle of reciprocity. Furthermore, it provides Member States with the option to apply a zero-rate VAT on supplies of goods and services to these same entities. The rules and conditions governing both the tax refund mechanism and the application of the zero-rate are to be determined by the domestic legislation of each individual Member State.