252.229-7003 — Tax Exemptions (Italy).
Researched by the BidStride Research Team
What This Clause Requires
DFARS 252.229-7003 — Tax Exemptions (Italy).. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.229-7003 Tax Exemptions (Italy). As prescribed in 229.402-70(c)(1), use the following clause: Tax Exemptions (Italy) (MAR 2012) (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 Italy. (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 October 26, 1972. (iii) The following fiscal code(s): [ Contracting Officer must insert the applicable fiscal code(s) for military activities within Italy: 80028250241 for Army, 80156020630 for Navy, or 91000190933 for Air Force ]. (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 Italy for the Common Defense by the United States Government pursuant to international agreements. The amount to be paid does not include the IVA tax, because this transaction is not subject to the tax in accordance with Article 72 of Decree Law 633, dated October 26, 1972.” 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 ad
Compliance Checklist
- (1) The Contractor shall include the following information on invoices submitted to the United States Government: (i) The contract number.
- (iii) The following fiscal code(s): [ Contracting Officer must insert the applicable fiscal code(s) for military activities within Italy: 80028250241 for Army, 80156020630 for Navy, or 91000190933 for Air Force ].
- (iii) The Contractor shall retain the certified copy to substantiate non-payment of the IVA tax.
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.
Frequently Asked Questions
DFARS 252.229-7003 (Tax Exemptions (Italy).) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.229-7003 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.
Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.