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• Levels of Exemption
• Types of Sales Tax Exemption Cards
• Who is Eligible
• How to apply for a tax exemption card
• Return of tax exemption cards
• Internet purchases
• Refunds
• Sales Tax Related Notes and Notices

Sales Tax Exemption

Tax Exemption Cards:

OFM issues tax exemption cards to eligible foreign missions, mission personnel and their eligible family members consistent with international law, domestic statute, and the underlying principle of reciprocity. Tax cards provide point-of-sale exemption from sales and use taxes throughout the United States. This system provides immediate relief from taxes without the administrative burdens, costs, and delays commonly associated with reimbursement systems.

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Levels of Exemption

OFM is directed to restrict the level of, or withdraw entirely, tax exemptions granted to a mission or its personnel in such cases where the sending state does not provide full tax exemption to U.S. missions in their country. To accomplish this, benefits provided by tax cards may be extended or restricted in several ways:

1. Full Exemption – A blue-stripe on a tax exemption card indicates full exemption from taxes on the purchase of all goods or services.
2. Withdrawal of Privileges – Tax exemption cards may be temporarily or completely withdrawn, eliminating the benefit of sales tax exemption.

(The following benefits and restrictions may occur singly or in tandem, as required to achieve reciprocity.)

1. Minimum Purchase Requirement – If a minimum purchase requirement is identified on the card, the sale must meet or exceed this amount in order to be eligible for tax exemption. The minimum purchase amount will be specified on the back of the card and is designated by a yellow stripe on the card’s front.
2. Excluded Categories – The card may limit the applicability of the tax exemption to or from certain categories of goods or services. These restrictions will be specified on the back of the card.

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Types of Sales Tax Exemption Cards

Mission Tax Exemption Card

Mission tax exemption cards are issued to designated representatives of embassies, consulates, and international organizations for use when making official purchases. Two cards will be issued to each diplomatic mission and consulate.

These cards may be used for exemption from taxes only when purchases are made for the official use of the mission. These cards may also be used by other mission employees for official purchases.

All purchases must be made in the name of the mission and paid for by either a mission check or credit card. Cash, credit cards or personal checks in the name of the bearer of the mission tax exemption card cannot be used as payment. More importantly, the agent may not use a mission card for personal purchases.

Personal Tax Exemption Cards

Personal tax exemption cards are issued for the sole benefit of the individual identified and pictured on the card. Under no circumstances may use of a personal sales tax exemption card be transferred. An individual may not loan the card to a family member or friend, regardless of his/her eligibility for exemption from taxes. Personal tax exemption cards are not valid for exemption from taxes on telephones, other utilities, or gasoline purchases. Exemptions from these items are processed separately.

Tax exemption cards that have expired or been recalled must be immediately returned to OFM. Personnel who complete a tour of duty or become otherwise ineligible for a tax exemption card must return their card to OFM as soon as possible.

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Who is Eligible

The following categories of accredited foreign mission personnel may apply for tax exemption cards:

• diplomatic officers and eligible family members who are not citizens or residents of the United States;
• administrative and technical staff members and eligible family members who are not citizens or residents of the United States;
• consular officers and eligible family members who are not citizens or residents of the United States;
• consular employees and eligible family members who are not citizens or residents of the United States;
• other staff who qualify based on bilateral treaties between the U.S. and certain countries
  dependent children of a mission member eligible for tax exemption privileges may obtain a tax exemption card at the age of 18. This card will be valid until the individual's 21 birthday; and
• dependent children of a mission member eligible for tax exemption who are accredited as justified student may have a tax exemption card until their 23rd birthday.

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How to Apply for a Tax-Exemption Card

To apply for a tax exemption card:

• Using the Department’s E-Government Program, complete a request for a Tax Exemption Card.
• Affix one current color photograph to the Photo Signature Card (printed from the E-Government Program).
• Following the submission of the request for Tax Exemption Card services, the mission shall print the “Submission Receipt” from the E-Government Program and attach it to the completed Photo Signature Card.
• Missions must deliver the “Submission Receipt” and the attached Photo Signature Card to OFM’s Customer Service Center (Washington, DC area only) or the appropriate OFM Regional Office.
• Allow at least five-working days for each application to be processed before contacting the Office of Foreign Missions concerning the status of a tax-exemption card.

To apply for a renewal tax-exemption card:

• Follow the procedures outlined above.

To apply for a replacement tax-exemption card (lost or stolen):

• Follow the procedures outlined above.
• If a tax card is lost or stolen, the mission must submit a diplomatic note to OFM explaining when and where the card in question was lost or stolen. OFM will not produce the replacement card until the aforementioned note is provided.
• In the event of a lost or stolen card, the Tax Exemption Card application for replacement will be held for 30 days before processing. This will allow time for the lost or stolen card to be returned.

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Return of Tax Exemption Cards

All tax exemption cards (both personal and mission) are the property of the U.S. Government and must be returned to OFM when they have expired, recalled, or when the individual’s employment or assignment with an embassy, consulate, or international organization has been terminated. Tax exemption cards of personnel who become permanent residents of the United States must also be returned to OFM.

Failure to return a tax exemption card as required is considered a violation of the Department of State regulations and may result in the temporary suspension of new card-issuance for the individual/mission.

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Internet Purchases

The nature of Internet purchases does not allow for the presentation of diplomatic tax exemption card. Therefore, OFM advises those eligible for tax exemption privileges that such relief cannot be granted on purchases made through an Internet website. OFM will not provide any assistance to foreign missions or their members in obtaining an exemption or reimbursement of taxes charges on purchases made through the Internet.

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Refunds

The Diplomatic Tax Exemption Program operates on a point-of sale basis. Therefore, the eligible cardholder must seek an exemption at the time of purchase or signing a contract. OFM will not assist in the refund of taxes paid on Internet purchases, regardless of the amount of the purchase.

OFM frequently receives requests from the diplomatic community for refunds of sales taxes paid by cardholders. Obtaining such refunds is difficult in a sales tax system, which is unlike a VAT system in that reimbursements and refunds are abnormal and extraordinary procedures. Therefore, OFM will only assist in attempting to obtain refunds of those taxes in excess of $50.00 per receipt.

When requesting OFM’s assistance with obtaining a tax refund the cardholder must submit a written request with an explanation of the circumstances, and copies of the receipt(s) (highlighting the taxes) and the tax exemption card. The request should also include the vendor’s business address and phone number, as well as the name of a point of contact. Please allow 30 days for processing.

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