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VAAR Part 829 - Taxes

Part 829 - Taxes

AUTHORITY:  40 U.S.C. 121(c) and 48 CFR 1.301-1.304.

829.000  Scope of part.

This part states the policies and procedures for the following:

(a) Exemptions of alcohol products purchased for use by the VA medical care program from Federal excise taxes.

(b) Specified refund procedures for State and local taxes.

Subpart 829.2 - Federal Excise Taxes

829.202  General exemptions.

829.202-70 Tax exemptions for alcohol products.

(a) General.

(b) Whiskey, alcohol, and denatured alcohol.

(c) Wine.  No tax exemption form or ATF/TTB permit is required for the tax-free procurement of wine from bonded wine premises.  The purchase order must show the kind, quantity, and alcohol content of the wine and must state the purpose for which wine is to be used (see 27 CFR 24.293).  An extra copy of a properly executed purchase order may be furnished to the bonded wine premises from which wine is purchased to facilitate record keeping.

(d) Beer.  The contracting officer may procure tax-free beer only from licensed breweries and only when such product is prescribed for patients’ therapeutic use.

Subpart 829.3 - State and Local Taxes

829.302  Application of State and local taxes to the Government.

(a) If a vendor refuses to sell at a price exclusive of the State and local tax, the contracting officer must use Standard Form (SF) 1094, U.S. Tax Exemption Certificate, as a basis for billing taxing authorities for a refund of taxes paid.

(b) A contracting officer may not furnish an SF 1094 to a vendor or use SF 1094 to claim reimbursement from the taxing authority when the total amount of State and local tax on any one purchase is $10 or less.

829.302-70  Purchases made from patients’ funds.

The contracting officer shall insert the clause at 852.229-70, Sales or use taxes, in solicitations and contracts when items are to be purchased solely from the personal funds of patients.

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