Sales Tax Exemption Guide for GPC
Supplies and services purchased using the GPC are paid directly by the Federal Government and are usually tax exempt. The GPC is embossed with the statement “US GOVT TAX EXEMPT” and the cardholder should inform the merchant that the purchase is for “official US Government business” and is not subject to state or local sales tax.
In accordance with legal precedents, there is not a blanket exemption for taxes only state sales and use taxes are exempt. The government may not be automatically exempt from taxes (e.g., local taxes) that are not sales or use taxes. For example, if a cardholder were to book a conference room at a hotel using a purchase card and there was a tourism tax provided, unless the local government specifically exempts the federal government, this tax would not be automatically exempt.
To assist GPC Participants with tax exemption for purchase card transactions please review the Sales Tax Exemption Guide.docx for additional information and links to the GSA state tax letters.
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