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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.229-7006 Value Added Tax Exclusion (United Kingdom)

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 clause states that supplies or services under the contract are delivered at a price that excludes United Kingdom value added tax (VAT). It matters because the price you charge should not include UK VAT, based on arrangements between US authorities and HMRC. The Contracting Officer certifies the purchase is for official US Government purposes only.

Applies to: Contracts for supplies or services delivered in the United Kingdom

Key terms: value added tax · Her Majesty's Revenue and Customs (HMRC) · HMRC Notice 431 · United States Government official purposes

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 229.402-70(f), use the follow clause:

Value Added Tax Exclusion (United Kingdom) (DEC 2011)

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 HMRC 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)

Sections it refers to

Sections that refer to it

← 252.229-7005 Tax exemptions (Spain). · 252.229-7007 Verification of United States receipt of goods. →

Rule changes for DFARS Part 252

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 252.229-7006 Value Added Tax Exclusion (United Kingdom) · SpendQuery