What is DFARS 252.229-7006?

DFARS 252.229-7006 (Value Added Tax Exclusion (United Kingdom)) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.

When is DFARS 252.229-7006 required?

DFARS 252.229-7006 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.

Does DFARS 252.229-7006 flow down to subcontractors?

Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.

Low RiskDFARSGeneral

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

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

DFARS 252.229-7006 — Value Added Tax Exclusion (United Kingdom). This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

Official Regulation Text

252.229-7006 Value Added Tax Exclusion (United Kingdom) 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) [76 FR 76320, Dec. 7, 2011]
Source: eCFR, 48 CFR 252.229-7006 (https://www.ecfr.gov/current/title-48/section-252.229-7006)

Compliance Checklist

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

BidStride automatically scans your RFPs for 252.229-7006

Stop hunting through solicitations manually. BidStride identifies every FAR and DFARS clause in your RFP, flags risk level, and surfaces compliance requirements before you submit your bid.

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.