FAR and DFARS › DFARS Part 229: Taxes › Subpart 229.2
DFARS 229.204 Federal excise tax on specific foreign contract payments.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This DFARS section restricts how the Governmentwide commercial purchase card can be used as a payment method when a contract includes the FAR clause on tax for certain foreign procurements. The contracting officer may only authorize the purchase card if the contract also includes the DFARS clause showing the contractor is fully exempt from the two-percent excise tax.
Applies to: Contracting officers and contractors on contracts that include FAR 52.229-12
What it requires
- The contracting officer shall not authorize the Governmentwide commercial purchase card as a payment method during any contract period of performance if the contract includes FAR 52.229-12, unless the contract also includes DFARS 252.229-7014.
Key terms: Governmentwide commercial purchase card · FAR 52.229-12 · 252.229-7014 · two-percent excise tax · foreign procurements
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The contracting officer shall not authorize the Governmentwide commercial purchase card as a method of payment during any contract period of performance if the contract includes the clause at FAR 52.229-12, Tax on Certain Foreign Procurements, unless the contract also includes the clause at 252.229-7014, Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements, indicating that the contractor is fully exempt from the tax.
Sections it refers to
- 52.229-12 Tax on Certain Foreign Procurements.
- 252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.
← 229.170-4 Contract clause. · 229.402 Foreign contracts. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.