Just as with my Quick Hitters on the FAR and GSAR, my Quick Hitter series on the DFARS is meant to simplify contracting business with the government. This time with DoD.
DFARS 229.101 Resolving Tax Problems
The Department of Defense has access to several loopholes based upon multiple agreements that allow them to be exempt from taxes in various situations.
PGI 229.101
For the diverse arms of the United States military, DLA and DCMA the acting legal council consists of those upon the tax committee of each umbrella of the agency designations.
Information regarding fuel taxes including applicability and refund can be found through DLA and the IRS. Your CO may direct litigation in accompaniment with the designated legal council if the contract is either a cost-reimbursement contract or a fixed-price contract with a tax escalator or other clause.
The United States European Command (USEUCOM) oversees tax relief on defense purchases involving agreements between the USA and countries in Europe. The Department of State posts treaties with worldwide agreements pertaining to tax applicability and exemptions on their website.
The DoD Tax Relief Program can establish applicability and exemptions with countries who do not yet have a structured agreement.
Taxes and international contracting possess the propensity to create an entirely different animal during the contracting process if you let it. I will plainly state at the time of this writing that I have no experience with international contracting. However, I have contact with people who teach the course. That’s not to say they will feed me information. Nevertheless, I possess an appetite for learning and have displayed the appropriate aptitude to make proper interpretations and aid in the decision-making process for such a purchase. Why else would my inbox be filled with International overtures while deals are on hold? Because contracting is contracting, is contracting.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation. 
,
RobertsonKX Business Blog 