FAR 29.000—Scope of part.
Plain-English Summary
FAR 29.000 is the scope statement for FAR Part 29, which covers tax issues in federal contracting. It tells readers that this part prescribes policies and procedures for using tax clauses in contracts, including foreign contracts; asserting immunity or exemption from taxes; and obtaining tax refunds. It also explains how Federal, State, and local taxes apply to certain supplies and services acquired by executive agencies, and how those taxes relate to the Federal Government’s status and purchasing activities. In practice, this section signals that Part 29 is a guidance framework for contracting personnel, not a complete tax law treatise, and that users must still consult the underlying tax statutes, regulations, and local tax authorities when specific issues arise. Its practical significance is that it helps contracting officers and contractors identify when tax clauses, tax-exemption claims, or refund procedures may affect contract pricing, invoicing, and administration.
Key Rules
Part 29 covers tax clauses
This part provides policies and procedures for using tax clauses in contracts. That includes contracts performed in the United States and foreign contracts where tax treatment may differ.
Tax immunity and exemption
The part addresses when the Government may assert immunity or exemption from taxes. This matters when a tax is claimed against the United States or when contract performance involves tax-exempt purchases.
Tax refunds procedures
Part 29 also covers obtaining tax refunds. Contracting personnel must know when taxes were improperly charged or when a refund claim is available and how to pursue it.
Federal, State, and local taxes
The section explains the relationship of Federal, State, and local taxes to certain supplies and services acquired by executive agencies. It is intended to help determine whether a tax applies and who bears the cost.
Government-wide informational scope
This section is for the general information of Government personnel and does not describe the full scope of tax laws and regulations. Users must treat it as a contracting policy reference, not a substitute for legal or tax advice.
Responsibilities
Contracting Officers
Use the tax clauses required by FAR Part 29, recognize when tax immunity or exemption issues may apply, and coordinate refund actions or tax-related contract terms as needed.
Contractors
Understand the tax clauses in their contracts, identify applicable Federal, State, local, or foreign tax obligations, and support any refund or exemption claims with proper documentation.
Executive Agencies
Apply the policies in Part 29 when acquiring supplies and services, ensure contract administration addresses tax treatment correctly, and coordinate with legal or tax officials when needed.
Government Personnel
Use Part 29 as general guidance on tax issues in contracting, but consult the actual tax laws, regulations, and agency counsel for complete and current requirements.
Practical Implications
Tax treatment can affect total contract cost, invoice accuracy, and whether a contractor should include taxes in its price.
A common pitfall is assuming FAR Part 29 itself answers every tax question; it does not, so users must check the underlying tax law and local rules.
Contracting officers should be alert to tax clauses in both domestic and foreign contracts, since tax obligations can differ significantly by location.
If taxes are charged where the Government may be exempt, the issue may need prompt review to preserve refund rights and avoid overpayment.
Because this section is only a scope statement, it mainly tells users where to look next; the detailed rules are in the rest of FAR Part 29 and in applicable tax authorities.
Official Regulatory Text
This part prescribes policies and procedures for (a) using tax clauses in contracts (including foreign contracts), (b) asserting immunity or exemption from taxes, and (c) obtaining tax refunds. It explains Federal, State, and local taxes on certain supplies and services acquired by executive agencies and the applicability of such taxes to the Federal Government. It is for the general information of Government personnel and does not present the full scope of the tax laws and regulations.