DFARS 252.229-7001 Tax Relief
Clause Defense Federal Acquisition Regulation Supplement Apr 2020 version
Facts
- Citation
- DFARS 252.229-7001
- Type
- Clause
- Current version
- April 2020
- Prescribed in
- DFARS 229.402-70(a)
- Alternates
- Alternate I
- Supplements
- FAR Subpart 52.2 Text of Provisions and Clauses
- Last amended
- 85 FR 19698 Effective Apr 8, 2020
- Text as of
- DFARS Change May 7, 2026
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this clause.
Text
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 (Apr 2020)
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)
Federal Register history
Quick answers
What is DFARS 252.229-7001?
DFARS 252.229-7001 is a clause of the Defense Federal Acquisition Regulation Supplement, titled "Tax Relief".
What is the current version of DFARS 252.229-7001?
The current version is dated April 2020.
Where is DFARS 252.229-7001 prescribed?
It is prescribed in DFARS 229.402-70(a), Additional provisions and clauses.
When was DFARS 252.229-7001 last changed?
The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Tax Relief” (DFARS Case 2018-D049)" (85 FR 19698), published Apr 8, 2020 and effective Apr 8, 2020.
Are changes to DFARS 252.229-7001 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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