(Revised
252.229-7000 Reserved.
252.229-7001 Tax Relief.
252.229-7002 Customs Exemptions (Germany).
252.229-7003 Tax Exemptions (Italy).
252.229-7004 Status of Contractor as a Direct
Contractor (Spain).
252.229-7005 Tax Exemptions (Spain).
252.229-7006 Value Added Tax Exclusion (United Kingdom).
252.229-7007 Verification Verification of United States Receipt of Goods.
252.229-7008 Relief from Import Duty (United Kingdom).
252.229-7009 Relief from Customs Duty and Value
Added Tax on Fuel (Passenger Vehicles)
(United Kingdom).
252.229-7010 Relief from Customs Duty on Fuel (United Kingdom).
252.229-7011 Reporting of
Foreign Taxes – U.S. Assistance Programs.
252.229-7012 Tax Exemptions (Italy)—Representation.
252.229-7013 Tax Exemptions (Spain)—Representation.
252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.
252.229-7000 Reserved.
252.229-7001 Tax Relief.
Basic. As prescribed in 229.402-70(a) and (a)(1), use the following clause:
TAX RELIEF—BASIC (APR 2020)
(a) Prices set forth in this contract are exclusive of all taxes and duties from which the United States Government is exempt by virtue of tax agreements between the United States Government and the Contractor’s government. The following taxes or duties have been excluded from the contract price:
|
NAME OF TAX: (Offeror insert) |
RATE (PERCENTAGE): (Offeror insert) |
(b) Invoices submitted in accordance with the terms and conditions of this contract shall be exclusive of all taxes or duties for which relief is available. The Contractor’s invoice shall list separately the gross price, amount of tax deducted, and net price charged.
(c) When items manufactured to United States Government specifications are being acquired, the Contractor shall identify the materials or components intended to be imported in order to ensure that relief from import duties is obtained. If the Contractor intends to use imported products from inventories on hand, the price of which includes a factor for import duties, the Contractor shall ensure the United States Government’s exemption from these taxes. The Contractor may obtain a refund of the import duties from its government or request the duty-free import of an amount of supplies or components corresponding to that used from inventory for this contract.
(End of clause)
Alternate I. As prescribed in 229.402-70(a) and (a)(2), use the following clause, which adds a paragraph (d) not included in the basic clause:
TAX RELIEF—ALTERNATE I (APR 2020)
(a) Prices set forth in this contract are exclusive of all taxes and duties from which the United States Government is exempt by virtue of tax agreements between the United States Government and the Contractor’s government. The following taxes or duties have been excluded from the contract price:
|
NAME OF TAX: [Offeror insert] |
RATE (PERCENTAGE): [Offeror insert] |
(b) Invoices submitted in accordance with the terms and conditions of this contract shall be exclusive of all taxes or duties for which relief is available. The Contractor’s invoice shall list separately the gross price, amount of tax deducted, and net price charged.
(c) When items manufactured to United States Government specifications are being acquired, the Contractor shall identify the materials or components intended to be imported in order to ensure that relief from import duties is obtained. If the Contractor intends to use imported products from inventories on hand, the price of which includes a factor for import duties, the Contractor shall ensure the United States Government’s exemption from these taxes. The Contractor may obtain a refund of the import duties from its government or request the duty-free import of an amount of supplies or components corresponding to that used from inventory for this contract.
(d) Tax relief will be claimed in Germany pursuant to the provisions of the Agreement Between the United States of America and Germany Concerning Tax Relief to be Accorded by Germany to United States Expenditures in the Interest of Common Defense. The Contractor shall use Abwicklungsschein fuer abgabenbeguenstigte Lieferungen/Leistungen nach dem Offshore Steuerabkommen (Performance Certificate for Tax-Free Deliveries/Performance according to the Offshore Tax Relief Agreement) or other documentary evidence acceptable to the German tax authorities. All purchases made and paid for on a tax-free basis during a 30-day period may be accumulated, totaled, and reported as tax-free.
(End of clause)
252.229-7002 Customs Exemptions (Germany).
As prescribed in 229.402-70(b), use the following clause:
CUSTOMS EXEMPTIONS (
Imported products required for the direct benefit of the United
States Forces are authorized to be acquired duty-free by the Contractor in
accordance with the provisions of the Agreement Between
the United States of America and Germany Concerning Tax Relief to be Accorded
by
(End of clause)
252.229-7003 Tax Exemptions (Italy).
As prescribed in 229.402-70(c)(1), use the following clause:
TAX EXEMPTIONS (
(a) As the Contractor represented in its offer, the contract price, including the prices in subcontracts awarded under this contract, does not include taxes from which the United States Government is exempt.
(b) The United States Government is exempt from
payment of Imposta Valore Aggiunto (IVA) tax in accordance
with Article 72 of the IVA implementing decree on all
supplies and services sold to United States Military Commands in
(1) The Contractor shall include the following information on invoices submitted to the United States Government:
(i) The contract number.
(ii) The IVA tax
exemption claimed pursuant to Article 72 of Decree Law 633, dated
(iii) The following fiscal code(s): [Contracting
Officer must insert the applicable fiscal code(s) for military activities
within
(2)(i) Upon receipt of the invoice, the paying office will include the following certification on one copy of the invoice:
|
“I certify
that this invoice is true and correct and reflects expenditures made in |
An authorized United States Government official will sign the copy of the invoice containing this certification.
(ii) The paying office will return the certified copy together with payment to the Contractor. The payment will not include the amount of the IVA tax.
(iii) The Contractor shall retain the certified copy to substantiate non-payment of the IVA tax.
(3) The Contractor may address questions regarding the IVA tax to the Ministry of Finance, IVA Office, Rome (06) 520741.
(c) In addition to the IVA
tax, purchases by the United States Forces in
(1) Imposta di Fabbricazione (Production Tax for Petroleum Products).
(2) Imposta di Consumo (Consumption Tax for Electrical Power).
(3) Dazi Doganali (Customs Duties).
(4) Tassa di Sbarco e d’Imbarco sulle Merci Transportate per Via Aerea e per Via Maritima (Port Fees).
(5) Tassa de Circolazione sui Veicoli (Vehicle Circulation Tax).
(6) Imposta di Registro (Registration Tax).
(7) Imposta di Bollo (Stamp Tax).
(End of clause)
252.229-7004 Status of Contractor as a Direct
Contractor (Spain).
As prescribed in 229.402-70(d), use the following clause:
STATUS OF CONTRACTOR AS A
DIRECT CONTRACTOR (
(a) “Direct Contractor,” as used in this clause, means an individual, company, or entity with whom an agency of the United States Department of Defense has executed a written agreement that allows duty-free import of equipment, materials, and supplies into Spain for the construction, development, maintenance, and operation of Spanish-American installations and facilities.
(b) The Contractor is hereby designated as a
Direct Contractor under the provisions of Complementary Agreement 5, articles
11, 14, 15, 17, and 18 of the Agreement on Friendship, Defense and Cooperation
between the United States Government and the
(c) The Contractor shall apply to the appropriate
Spanish authorities for approval of status as a Direct Contractor in order to
complete duty-free import of non-Spanish equipment, materials, and supplies
represented as necessary for contract performance by the Contracting
Officer. Orders for equipment,
materials, and supplies placed prior to official notification of such approval
shall be at the Contractor’s own risk.
The Contractor must submit its documentation in sufficient time to
permit processing by the appropriate
(d) To ensure that all duty-free imports are properly accounted for, exported, or disposed of, in accordance with Spanish law, the Contractor shall obtain a written bank letter of guaranty payable to the Treasurer of the United States, or such other authority as may be designated by the Contracting Officer, in the amount set forth in paragraph (g) of this clause, prior to effecting any duty-free imports for the performance of this contract.
(e) If the Contractor fails to obtain the required guaranty, the Contractor agrees that the Contracting Officer may withhold a portion of the contract payments in order to establish a fund in the amount set forth in paragraph (g) of this clause. The fund shall be used for the payment of import taxes in the event that the Contractor fails to properly account for, export, or dispose of equipment, materials, or supplies imported on a duty-free basis.
(f) The amount of the bank letter of guaranty or size of the fund required under paragraph (d) or (e) of this clause normally shall be 5 percent of the contract value. However, if the Contractor demonstrates to the Contracting Officer’s satisfaction that the amount retained by the United States Government or guaranteed by the bank is excessive, the amount shall be reduced to an amount commensurate with contingent import tax and duty-free liability. This bank guaranty or fund shall not be released to the Contractor until the Spanish General Directorate of Customs verifies the accounting, export, or disposition of the equipment, material, or supplies imported on a duty-free basis.
(g) The amount required under paragraph (d), (e), or (f) of this clause is (Contracting Officer insert amount at time of contract award) .
(h) The Contractor agrees to insert the provisions of this clause, including this paragraph (h), in all subcontracts.
(End of clause)
252.229-7005 Tax Exemptions (Spain).
As prescribed in 229.402-70(e)(1), use the following clause:
TAX EXEMPTIONS (
(a) As the Contractor represented in its offer, the contract price, including the prices in subcontracts awarded under this contract, does not include taxes from which the United States Government is exempt.
(b) In accordance with tax relief agreements between the United States Government and the Spanish Government, and because the incumbent contract arises from the activities of the United States Forces in Spain, the contract will be exempt from the following excise, luxury, and transaction taxes:
(1) Derechos de Aduana (Customs Duties).
(2) Impuesto de Compensacion a la Importacion (Compensation Tax on Imports).
(3) Transmissiones Patrionomiales (Property Transfer Tax).
(4) Impuesto Sobre el Lujo (Luxury Tax).
(5) Actos Juridocos Documentados (Legal Official Transactions).
(6) Impuesto Sobre el Trafico de Empresas (Business Trade Tax).
(7) Impuestos Especiales de Fabricacion (Special Products Tax).
(8) Impuesto Sobre el Petroleo y Derivados (Tax on Petroleum and its By-Products).
(9) Impuesto Sobre el Uso de Telefona (Telephone Tax).
(10) Impuesto General Sobre la Renta de Sociedades y demas Entidades Juridicas (General Corporation Income Tax).
(11) Impuesto Industrial (Industrial Tax).
(12) Impuesto de Rentas Sobre el Capital (Capital Gains Tax).
(13) Plus Vailia (Increase on Real Property).
(14) Contribucion
Territorial
(15) Contribucion Territorial Rustica y Pecuaria (Farmland Real Estate Tax).
(16) Impuestos de la Diputacion (
(17) Impuestos Municipal y Tasas Parafiscales (Municipal Tax and Charges).
(End of clause)
252.229-7006 Value Added Tax Exclusion (United Kingdom)
As prescribed in 229.402-70(f), use the follow clause:
VALUE ADDED TAX EXCLUSION
(
The supplies or services identified in this contract are to be delivered at a price exclusive of value added tax under arrangements between the appropriate United States authorities and Her Majesty’s Revenue and Customs (HMRC Reference Notice 431, entitled Relief from Customs Duty and/or Value Added Tax on United States Government Expenditures in the United Kingdom). By executing this contract, the Contracting Officer certifies that these supplies or services are being purchased for United States Government official purposes only.
(End of clause)
252.229-7007 Verification of United States Receipt of Goods.
As prescribed in 229.402-70(g), use the following clause:
VERIFICATION OF UNITED STATES RECEIPT OF GOODS (JUN 1997)
The Contractor shall insert the following statement on all Material Inspection and Receiving Reports (DD Form 250 series) for Contracting Officer approval:
“I certify that the items listed on this invoice have been
received by the
(End of clause)
252.229-7008 Relief from Import Duty (United Kingdom).
As prescribed in 229.402-70(h), use the following clause:
RELIEF FROM IMPORT DUTY (
Any import dutiable articles, components, or raw materials supplied to the United States Government under this contract shall be exclusive of any United Kingdom import duties. Any imported items supplied for which import duty already has been paid will be supplied at a price exclusive of the amount of import duty paid. The Contractor is advised to contact Her Majesty’s Revenue and Customs to obtain a refund upon completion of the contract (Reference HMRC Notice No. 431, entitled “Relief from Customs Duty and/or Value Added Tax on United States Government Expenditures in the United Kingdom”).
(End of clause)
252.229-7009 Relief from Customs Duty and Value
Added Tax on Fuel (Passenger Vehicles) (United Kingdom).
As prescribed in 229.402-70(i), use the following clause:
RELIEF FROM CUSTOMS DUTY AND VALUE ADDED TAX ON FUEL
(PASSENGER VEHICLES) (
(a) Pursuant to an agreement between the United States Government and Her Majesty’s (HM) Customs and Excise, fuels and lubricants used by passenger vehicles (except taxis) in the performance of this contract will be exempt from customs duty and value added tax. Therefore, the procedures outlined in HM Customs and Excise Notice No. 431B, August 1982, and any amendment thereto, shall be used to obtain relief from both customs duty and value added tax for fuel used under the contract. These procedures shall apply to both loaded and unloaded miles. The unit prices shall be based on the recoupment by the Contractor of customs duty in accordance with the following allowances:
(1) Vehicles (except taxis) with a seating capacity of less than 29, one gallon for every 27 miles.
(2) Vehicles with a seating capacity of 29-53, one gallon for every 13 miles.
(3) Vehicles with a seating capacity of 54 or more, one gallon for every
10 miles.
(b) In the event the mileage of any route is increased or decreased within 10 percent, resulting in no change in route price, the customs duty shall be reclaimed from HM Customs and Excise on actual mileage performed.
(End of clause)
252.229-7010 Relief from Customs Duty on Fuel (United Kingdom).
As prescribed in 229.402-70(j), use the following clause:
RELIEF FROM CUSTOMS DUTY
ON FUEL (
(a) Pursuant to an agreement between the United
States Government and Her Majesty’s (HM) Customs and Excise, it is possible to
obtain relief from customs duty on fuels and lubricants used in support of
certain contracts. If vehicle fuels and
lubricants are used in support of this contract, the Contractor shall seek
relief from customs duty in accordance with HM Customs Notice No. 431, February
1973, entitled “Relief from Customs Duty and/or Value Added Tax on United
States Government Expenditures in the
(b) Specific information should be included in the request for tax relief, such as the number of vehicles involved, types of vehicles, rating of vehicles, fuel consumption, estimated mileage per contract period, and any other information that will assist HM Customs and Excise in determining the amount of relief to be granted.
(c) Within 30 days after the award of this contract, the Contractor shall provide the Contracting Officer with evidence that an attempt to obtain such relief has been initiated. In the event the Contractor does not attempt to obtain relief within the time specified, the Contracting Officer may deduct from the contract price the amount of relief that would have been allowed if HM Customs and Excise had favorably considered the request for relief.
(d) The amount of any rebate granted by HM
Customs and Excise shall be paid in full to the United States Government. Checks shall be made payable to the Treasurer
of the
(End of clause)
252.229-7011 Reporting of
Foreign Taxes – U.S. Assistance Programs.
As prescribed in 229.170-4, use the
following clause:
REPORTING OF FOREIGN TAXES –
(a) Definition. “Commodities,” as used in this clause, means
any materials, articles, supplies, goods, or equipment.
(b) Commodities acquired under this contract
shall be exempt from all value added taxes and customs duties imposed by the
recipient country. This exemption is in
addition to any other tax exemption provided through separate agreements or
other means.
(c) The Contractor shall inform the foreign
government of the tax exemption, as documented in the Letter of Offer and
Acceptance, country-to-country agreement, or interagency agreement.
(d) If the foreign government or entity
nevertheless imposes taxes, the Contractor shall promptly notify the
Contracting Officer and shall provide documentation showing that the foreign
government was apprised of the tax exemption in accordance with paragraph (c)
of this clause.
(e) The Contractor shall insert the substance of
this clause, including this paragraph (e), in all subcontracts for commodities
that exceed $500.
(End of clause)
252.229-7012 Tax Exemptions (Italy)—Representation.
As prescribed in 229.402-70(c)(2), use the following provision:
TAX EXEMPTIONS (ITALY)—REPRESENTATION (MAR 2012)
(a) Exemptions. The United States Government is exempt from payment of—
(1) Imposta Valore Aggiunto (IVA) tax in accordance with Article 72 of the IVA implementing decree on all supplies and services sold to United States Military Commands in Italy; and
(2) The other taxes specified in paragraph (c) of the clause DFARS 252.229-7003, Tax Exemptions (Italy).
(b) Representation. By submission of its offer, the offeror represents that the offered price, including the prices of subcontracts to be awarded under the contract, does not include the taxes identified herein, or any other taxes from which the United States Government is exempt.
(End of provision)
252.229-7013 Tax Exemptions (Spain)—Representation.
As prescribed in 229.402-70(e)(2), use the following provision:
TAX EXEMPTIONS (SPAIN)—REPRESENTATION (APR 2012)
(a) Exemptions. In accordance with tax relief agreements between the United States Government and the Spanish Government, and because the resultant contract arises from the activities of the United States Forces in Spain, the contract will be exempt from the excise, luxury, and transaction taxes listed in paragraph (b) of the clause DFARS 252.229-7005, Tax Exemptions (Spain).
(b) Representation. By submission of its offer, the offeror represents that the offered price, including the prices of subcontracts to be awarded under the contract, does not include the taxes identified herein, or any other taxes from which the United States Government is exempt.
(End of provision)
252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.
As prescribed in 229.402-70(k), use the following clause:
FULL EXEMPTION FROM TWO-PERCENT EXCISE TAX ON CERTAIN FOREIGN PROCUREMENTS (OCT 2022)
(a) As the Contractor represented in its offer, any item, including any item delivered under subcontract; any service; or any combination thereof delivered under this contract is fully exempt from the 2-percent excise tax withholding imposed by 26 U.S.C. 5000C and implemented by Federal Acquisition Regulation (FAR) 52.229-12, Tax on Certain Foreign Procurements.
(b) If the full exemption no longer applies due to a change in circumstances during the performance of the contract, causing the Contractor to become subject to the withholding for the 2-percent excise tax as imposed by 26 U.S.C. 5000C, then the Contractor shall immediately comply with the notification and billing requirements of FAR clause 52.229-12.
(End of clause)