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  • Question

    Does DFARS 252.229-7001 apply to my solicitation/contract since the prescription does not specifically state commercial or non-commercial application?


    Answer

    Generally the FAR and DFARS will specifically say if a clause is applicable to commercial item procurement.  In this case, the clause and the prescription do not say it is applicable to commercial items, so you can assume that the clause is not applicable for your commercial service procurement.  But, since we are talking about taxes, I was a little worried about giving you  this advice, so I checked a bit more. 

    There is no foreign taxes clause in FAR/DFARS Part 12, so there is no commercial clause equivalent.  Also, if you check the clause matrix in the FAR (unfortunately this does not exist in the DFARS), FAR 52.229-7 Taxes--Fixed Price Contracts with Foreign Government does not apply to commercial items.  So if the FAR clause doesn't apply to commercial items, I think it is safe to say that the DFARS clause doesn't apply. (The Clause Matrix is at FAR 52.301)

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