What historical rules did SC Revenue Ruling 15-11 give for purchases by government employees, diplomats, and nonprofit employees?

Plain-English summary

South Carolina Revenue Ruling 15-11 explained when purchases made by federal employees, foreign diplomats, and similar employees were exempt from state and Department-administered local sales, use, and accommodations taxes.

The main federal rule was who made the purchase, not whether the employee was traveling on official business. A purchase was exempt when the federal government was directly billed, a centrally billed federal card was used, or payment came from a federal government check. A purchase billed to the employee was taxable even if the government later reimbursed it.

RR 19-7 expressly superseded this ruling after its SmartPay2 cards were replaced. The legal purchaser principle remains central in the later ruling, but the old card numbers and designs here are historical.

Federal government and instrumentalities

The ruling applied the same direct-purchaser approach to the federal government, the American Red Cross, and federally chartered credit unions:

• direct billing to the exempt entity, its centrally billed card, or its check supported exemption;
• direct billing to an employee followed by reimbursement did not; and
• the retailer did not need an ST-8 for an exempt transaction but should document the exemption on the invoice or receipt.

An association representing federal credit unions was not itself treated as a federal credit union.

Foreign diplomats and Taipei personnel

Diplomatic and consular exemptions depended on a valid exemption card and the exact privileges shown on it. The ruling distinguished mission cards for official purchases from personal cards for the named individual.

Mission-card purchases required qualifying payment in the mission's name and did not qualify when paid by cash or personal check. Personal cards were nontransferable and could be used only by the pictured holder. The ruling said diplomatic cards did not exempt telephone, other utility, or gasoline taxes, and vehicle purchases required separate approval.

Comparable card rules applied to eligible Taipei offices, personnel, and dependents through cards issued by the American Institute in Taiwan.

State and nonprofit employees

Sales of accommodations to state, local, school, college, and university employees were taxable regardless of who paid. Tangible-property purchases were generally taxable unless a specific exemption applied to the item.

Most nonprofit employee purchases were also taxable regardless of payment. The ruling identified a narrow exception for a qualifying charitable hospital predominantly serving children and providing care without charge, when the hospital was directly billed, used its directly billed card, or paid by hospital check.

Scope limitation

The ruling addressed state taxes and local sales and use taxes collected by the Department. It expressly did not address local hospitality taxes on prepared meals and beverages or local accommodations taxes collected directly by counties or municipalities.

Common questions

Q: Was a federal employee's reimbursed hotel or retail purchase exempt?

A: No, if the employee was directly billed. Reimbursement did not make the federal government the purchaser.

Q: Did every diplomatic card provide a complete exemption?

A: No. The card type and printed restrictions controlled, and some purchases required separate approval or were excluded.

Q: Were all nonprofit purchases exempt?

A: No. The ruling treated most nonprofit employee purchases as taxable unless a specific statutory exemption applied.

Q: Is RR 15-11 current card guidance?

A: No. RR 19-7 expressly superseded it after the federal card program changed.

Citations and references

• S.C. Code Ann. § 12-36-2120(1) and (2) (diplomatic or constitutionally protected sales and federal-government sales)
• S.C. Code Ann. § 12-36-2120(41) and (47) (specified nonprofit-related exemptions)
• S.C. Code Ann. §§ 12-36-910, 12-36-920, 12-36-1110, and 12-36-2110 (taxes and rates described in the ruling)
• Department of Employment v. United States, 385 U.S. 355 (1966) (American Red Cross authority cited by the ruling)
• SC Revenue Ruling #19-7 (superseding guidance identified in the corpus)

Subject

Sales to Government Employees, Foreign Diplomats, and Other Similar Employees While on Official Business

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR15-11.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 12265, Columbia, South Carolina 29211

SC REVENUE RULING #15-11
SUBJECT:

Sales to Government Employees, Foreign Diplomats, and Other Similar
Employees While on Official Business
(Sales, Use, and Accommodations Taxes)

SUPERSEDES:

SC Revenue Ruling #13-2

REFERENCES:

S. C. Code Ann. Section 12-36-2120 (2014)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public. It is
an advisory opinion issued to apply principles of tax law to a set of facts
or general category of taxpayers. It is the Department’s position until
superseded or modified by a change in statute, regulation, court decision,
or another Departmental advisory opinion.

OVERVIEW
The State of South Carolina imposes a 6% sales tax on the gross proceeds of sales of every
person engaged in the business of selling tangible personal property at retail, a 7% sales tax on
charges for any sleeping accommodations of less than 90 continuous days to the same person, a
6% sales tax on “additional guest charges” added to a room charge for room service, laundering
and dry cleaning services, in-room movies, telephone service, and rentals of meeting rooms; and
a maximum sales tax of $300 on the sale of certain items, such as motor vehicles. (See Code
Sections 12-36-910, 12-36-920, 12-36-1110, and 12-36-2110.)
Specific exemptions in South Carolina law exempt certain government and business related sales
from South Carolina tax. Specifically, Code Section 12-36-2120 contains sales, use and
accommodations tax exemptions for the following:

1

1. Federal Government. Code Section 12-36-2120(2) exempts tangible personal property sold to
the federal government. This exemption applies to sales to instrumentalities of the federal
government, such as the American Red Cross 1 and a federally chartered credit union. 2 Other
federal agencies and instrumentalities include the Department of Defense, Army, Navy, Air
Force, United States hospitals, and federal housing authorities.

2. Foreign Diplomats. Code Section 12-36-2120(1) exempts sales of tangible personal
   property that South Carolina is prohibited from taxing by the Constitution or laws of the
   United States or South Carolina. Tax exemption privileges for foreign diplomats, consular
   officers, and staff members are generally based on two treaties: the Vienna Convention on
   Diplomatic Relations and Vienna Convention on Consular Relations. These treaties have
   been ratified by the United States and are the supreme law of the land under Article VI of
   the U.S. Constitution. Not all foreign missions and their personnel are entitled to tax
   exemption; tax exemption privileges are based on reciprocity and are only granted to a
   foreign official in the United States if United States and Consular personnel receive the
   equivalent privileges in that country.
3. Nonprofit Organizations. Code Section 12-36-2120(41) exempts items sold by organizations
   exempt from ad valorem property taxation under Section 12-37-220A(3) and (4) and B(5),
   (6), (7), (8), (12), (16), (19), (22), and (24), if the net proceeds are used exclusively for
   exempt purposes and no benefit inures to any individual. Code Section 12-36-2120(47)
   exempts tangible personal property sold to charitable hospitals predominately serving
   children exempt under Section 12-37-220, where care is provided without charge to the
   patient. 3
   While it is clear that South Carolina is not permitted to impose a tax directly on the federal
   government, questions often arise when a government employee is making work related
   purchases. Similar questions arise about the taxation of sales, accommodations, food, gas taxes,
   and other similar taxes when a foreign diplomat stationed in the United States, or a state
   employee or nonprofit employee is making purchases in South Carolina. In general, the
   applicability of the sales and use tax with such employees depends upon whether the government
   or nonprofit organization is making the purchase or the employee.
   This advisory opinion provides guidance concerning the taxability of sales to: (1) employees of
   the federal government, including instrumentalities of the federal government, such as the
   American Red Cross or federal credit unions, (2) foreign diplomats (including Taipei officials),
   or (3) other similar employees, such as employees of nonprofit organizations or state
   governments and colleges.

1

See Department of Employment, et.al. v. United States, 385 U.S. 355 (1966), and SC Information Letter

89-34.

2
See South Carolina Attorney General Opinion #S-OAG-59.
3
For additional information on the exemption for nonprofit organizations, see SC Revenue Ruling #12-3
and SC Revenue Procedure #03-6 or subsequently issued advisory opinions.

2

Note: This document addresses South Carolina’s state sales and use taxes and local sales and use
taxes that are collected by the Department on behalf of local governments. The local sales and
use taxes imposed by South Carolina counties that are collected by the Department generally do
not apply to sales which are exempt from the State sales and use tax (sales of unprepared food
may be subject to local sales and use taxes in certain counties). Other local sales and use taxes
that are collected directly by the county or municipality, such as a local hospitality tax on the sale
of prepared meals and beverages or local accommodations tax, are not addressed in this
document.

I.

FEDERAL GOVERNMENT

A. Taxation of Sale. The taxability of a transaction involving the federal government depends
upon whether the sale is made to the federal employee or the federal government. If the sale
is not taxable, the Department does not require a tax exempt form, such as the ST-8,
“Exemption Certificate (Single Sale Only),” to be provided to the retailer to receive the
exemption. Retailers should document the tax exemption information on the invoice or
transaction receipt.

1. Taxable Sale – A Sale between Retailer and Federal Employee. If the federal
   employee is billed directly for the purchase and reimbursed by the U.S. Government,
   the sale is subject to South Carolina sales and use tax, unless the sale is otherwise
   exempt (e.g., sale of a newspaper).
2. Exempt Sale – A Sale between Retailer and Federal Government. A sale to a federal
   government employee conducting official business is exempt from tax if:
   a. the federal government is billed directly,
   b. the federal employee uses a credit card that is billed directly to the federal
   government (see discussion below), or
   c. the federal employee pays with a federal government check.
   General Service Administration (“GSA”) SmartPay Cards. The General Services
   Administration (“GSA”), through the GSA SmartPay® program, has contracted with
   Citibank, JPMorgan Chase, and US Bank to provide charge card services to Federal
   government agencies and organizations for conducting official business. For most
   agencies/organizations, the program will be effective through November 29, 2018.
   The GSA SmartPay® program consists of three business lines (Purchase, Fleet, and
   Travel). These charge cards can be identified by their unique prefixes and account
   numbers, government designed artwork, and wording that indicates that the card is for
   official purchases for the U.S. Government. Card designs and account numbering
   structures can be accessed at www.gsa.gov/gsasmartpay and are also provided in Exhibit
   A.

3

The four SmartPay cards currently used and the taxability of purchases made with each
card is summarized below. The taxability is dependent on the billing method – is the
card “centrally” billed, 4 or “individually” billed, 5 or a combination billing.

1. Purchase Charge Card. This card is used for purchasing supplies and services to
   support U.S. Government operations. It is a centrally billed account. Accordingly,
   official purchases made with these cards are exempt from South Carolina sales and
   use taxes.
2. Fleet Charge Card. This card is used for government vehicle fuel and maintenance
   requirements. It is a centrally billed account. Accordingly, official purchases made
   with these cards are exempt from South Carolina sales and use taxes.
3. Travel Charge Card. This card is used for official government travel and travel
   related expenses. It may be a centrally billed account or an individually billed
   account; the 6th digit identifies whether the account is centrally or individually
   billed.
   Centrally Billed. If the first four digits and the sixth digit are one of the following,
   then the account is centrally billed and official purchases made with these cards are
   exempt from South Carolina sales and use taxes.
   Visa #4486 and #4614 and the sixth digit is 0, 6, 7, 8 or 9;
   Mastercard #5565 and #5568 and the sixth digit is 0, 6, 7, 8 or 9.
   Individually Billed. If the first four digits and the sixth digit are one of the
   following, then the account is individually billed and official purchases made with
   these cards are subject to South Carolina sales and use taxes.
   Visa #4486 and #4614 and the sixth digit is 1, 2, 3 or 4;
   Mastercard #5565 and #5568 and the sixth digit is 1, 2, 3 or 4.
4. Integrated Charge Card – Currently used only by the Department of Interior. This
   card combines two or more of the above business lines (i.e., includes fleet, travel,
   and/or purchase functionality and offers a single card for all purchases).
   Refer to Exhibit A for a list of the account numbers and type of billing for the
   “integrated” card used by the Department of Interior. If the numbering sequence
   specific to the agency indicates the integrated card account is individually billed,
   then such purchases will be subject to South Carolina sales and use taxes.

4

Centrally Billed Card. A charge card account in which all charges are billed directly to the federal
government and paid directly by the federal government to the issuing bank. This card is the sole
responsibility of the U.S. Government.
5
Individually Billed Card. A charge card account in which all charges are paid directly by the
cardholder/federal employee to the issuing bank; the federal employee is then reimbursed by the
government. This card is the sole responsibility of the employee (i.e., the federal government is not
responsible if the cardholder fails to pay).

4

Other Federal Government Credit Cards. Federal employees could, on occasion, be
issued a credit card other than one described above for use in conducting official
business. The taxability of the transaction depends upon whether the sale is made to the
federal government (i.e., the federal government is directly billed) or to the federal
employee. (See further explanation in Section A, above.) If the sale is not taxable, the
retailer should document the tax exemption information on the invoice and obtain a copy
of the credit card.
B. American Red Cross Employee. The taxability of a transaction involving the American Red
Cross depends upon whether the sale is made to the employee or the Red Cross. If the sale is
not taxable, the Department does not require a tax exempt form, such as the ST-8,
“Exemption Certificate (Single Sale Only),” to be provided to the retailer to receive the
exemption. Retailers should document the tax exemption information on the invoice or
transaction receipt.

1. Taxable Sale – A Sale between Retailer and American Red Cross Employee. If the
   employee is billed directly and reimbursed by the American Red Cross, the sale is
   subject to South Carolina sales and use tax.
2. Exempt Sale – A Sale between Retailer and American Red Cross. A sale to a Red
   Cross employee conducting official business is exempt from tax if:
   a. the Red Cross is billed directly,
   b. the employee uses a credit card that is billed directly to the Red Cross, or
   c. the employee pays with a Red Cross check.
   C. Federal Credit Union Employee. The taxability of a transaction involving the federal credit
   union depends upon whether the sale is made to the employee or the federal credit union. If
   the sale is not taxable, the Department does not require a tax exempt form, such as the ST-8,
   “Exemption Certificate (Single Sale Only),” to be provided to the retailer. Retailers should
   document the tax exemption information on the invoice or transaction receipt.
3. Taxable Sale – A Sale between Retailer and Federal Credit Union Employee. If the
   employee is billed directly and reimbursed by the federal credit union, the sale is
   subject to South Carolina sales and use tax.
4. Exempt Sale – A Sale between Retailer and Federal Credit Union. A sale to a federal
   credit union employee conducting official business is exempt from tax if:
   a. the credit union is billed directly,
   b. the employee uses a credit card that is billed directly to the credit union, or
   c. the employee pays with the credit unions check.
   Note: This exemption does not apply to an employee who works for an association that
   represents various federal credit unions if the association pays the charges since the
   association is not a federal credit union.

5

II.

FOREIGN DIPLOMAT

Part A – General Rules
Taxation of Sale. Pursuant to Code Section 12-36-2120(1), sales to foreign diplomats are
exempt from tax in accordance with the type of card issued by, and the level of exemption
authorized by, the United States Department of State’s Office of Foreign Mission. The Office
of Foreign Mission issues “Diplomatic Tax Exemption Cards” to eligible foreign diplomatic
and consular missions and in most cases to their personnel and eligible family members
located in the United States. Such cards are used to authorize the exemption of state and local
sales tax, restaurant/meal tax, lodging/accommodation tax, and similar taxes in South
Carolina. See Exhibit B for samples of the tax exemption cards and the tax exemption
provisions of each card. Note: The tax exemption card, however, is not valid for exemption
from taxes on telephones, other utilities, or gasoline purchases. For purchases of vehicles, the
Office of Foreign Missions must approve the sales tax exemption.
In instances where the diplomatic mission or agent is denied the tax exemption by the Office
of Foreign Missions, the vendor should collect any tax that is normally imposed at the time
of purchase. Questions concerning South Carolina sales and use tax requirements should be
directed to the Department of Revenue. Questions regarding the eligibility of diplomatic or
consular officers for sales and use tax exemption should be directed to the Office of Foreign
Missions at [email protected] or the number on the card.
Diplomatic Tax Exemption Cards. The Diplomatic Tax Exemption Cards feature one of
four images of animals (owl, buffalo, eagle, or deer) that are native to North America. Each
image provides the retailer with (1) a visual cue of tax exemption privileges and (2) an
indication of whether the card is intended for official or personal purchases.

1. “Mission” Tax Exemption Card (Contains an owl or buffalo image.) This card is used by
   foreign diplomatic and consular missions to exempt official purchases necessary for the
   operation of the diplomatic or consular mission from South Carolina state and local sales
   and use taxes, accommodations taxes, and similar taxes. Other features of the card are:
   ▪

Cards with an “owl” image allow a full tax exemption on all purchases, including
hotel stays and restaurant meals, but not including vehicle purchases.

▪

Cards with a “buffalo” image subject the cardholder/mission to some degree of
restriction from certain purchases or amounts as identified on the face of the card.

▪

The person whose photo appears on the card is the mission’s point of contact and is
the person responsible for ensuring appropriate use of the card. The individual does
not need to be present when purchases are made.

▪

All purchases must be paid for with a check, credit card, or wire transfer transaction
in the name of the mission. The exemption is not allowed if payment is by cash or
personal check.

6

2. “Personal” Tax Exemption Card (Contains an eagle or deer image.) This card is used by
foreign diplomatic or consular mission members to exempt their personal purchases in
South Carolina from South Carolina state and local sales and use taxes, accommodations
taxes, and similar taxes. Other features of the cards are:
▪

Cards with an “eagle” image allow a full tax exemption on all purchases, including
hotel stays and restaurant meals, but not including vehicle purchases.

▪

Cards with a “deer” image subject the cardholder/mission to some degree of
restriction from certain purchases or amounts as identified on the face of the card.

▪

This card can be used only by the individual named and pictured on the card. It is not
transferable to another person, family member or friend.

▪

There is no restriction on the type of payment when using this card.

▪

This card does not exempt purchases via the Internet or mail-order catalog from
applicable state and local taxes.

Part B – Special Rules for Taipei
Taxation of Sale. The American Institute in Taiwan issues tax exemption cards to the Taipei
Economic and Cultural Representative Office (TECRO), the Taipei Economic and Cultural
Offices (TECOs), their eligible personnel, and their qualifying dependents. These cards
authorize exemptions from state and local sales tax, restaurant/meal tax, lodging/
accommodations tax, and similar taxes in South Carolina. See Exhibit C for samples of the
tax exemption cards and the tax exemption provisions of each card.
Note: The tax exemption card, however, is not valid for exemption from taxes on telephones,
other utilities, gasoline purchases, or purchases of vehicles. In instances where the purchaser
is denied the tax exemption by the American Institute in Taiwan, the vendor should collect
any tax that is normally imposed at the time of purchase. Questions concerning South
Carolina sales and use tax requirements should be directed to the Department of Revenue.
Vendors should verify the card’s validity at https://ofmapps.state.gov/tecv/ or by calling the
phone number on the back of the tax exemption card. Questions regarding the eligibility for
the sales and use tax exemption should be directed to the American Institute in Taiwan at
703-525-8474.
Taipei Tax Exemption Cards. The Taipei Tax Exemption Cards feature one of two images
of animals (owl or eagle) that are native to North America. Each image provides the retailer
with (1) a visual cue of tax exemption privileges and (2) an indication of whether the card is
intended for official or personal purchases.

7

1. Taipei Official Tax Exemption Card (Contains an owl image.) This card is used by the
Economic and Cultural Representative Office or a Taipei Economic and Cultural Office
to exempt official purchases necessary for its operation from South Carolina state and
local sales and use taxes, accommodations taxes, and similar taxes. Other features of the
card are:
▪

The card with the “owl” image allows a full tax exemption on all purchases, including
hotel stays and restaurant meals, but not including vehicle purchases.

▪

The person whose photo appears on the card is the office’s point of contact and is the
person responsible for ensuring appropriate use of the card. The individual does not
need to be present when purchases are made.

▪

All purchases must be paid for with a check, credit card, or wire transfer transaction
in the name of the Taipei Economic and Cultural Representative Office or a Taipei
Economic and Cultural Office. The exemption is not allowed if payment is by cash or
personal check.

2. “Personal” Tax Exemption Card (Contains an eagle image). This card is used by eligible
   personnel and their dependents to exempt their personal purchases in South Carolina
   from South Carolina state and local sales and use taxes, accommodations taxes, and
   similar taxes. Other features of the card are:
   ▪

This card can be used only by the individual named and pictured on the card. It is not
transferable to another person, family member or friend.

▪

There is no restriction on the type of payment when using this card.

▪

The card does not exempt purchases via the Internet or mail-order catalog from
applicable state and local taxes.

III. TAXATION OF SALES TO STATE EMPLOYEES OR NONPROFIT
ORGANIZATION EMPLOYEES
A. State or Local Government Employees. Sales to any state or local government employee are
subject to accommodations tax regardless of whether the state or local government or the
employee pays for the charges. Sales and use taxes generally apply on purchases of tangible
property, unless an exemption applies to the specific purchase (e.g., purchase of a
newspaper).
B. School District, College and University Employees. Sales to any college or university
employee are subject to accommodations tax regardless of whether the state or local
government or the employee pays for the charges. Sales and use taxes generally apply on
purchases of tangible property, unless an exemption applies to the specific purchase (e.g.,
purchase of a textbook).

8

C. Nonprofit Organization Employee. Only sales to an employee of a charitable hospital
predominately serving children exempt under Code Section 12-37-220, where care is
provided without charge to the patient as provided in Code Section 12-36-2120(47) are
exempt from sales tax if: (1) the qualifying hospital is billed directly for the transaction, (2)
the qualifying hospital employee uses a credit card that is billed directly to the hospital, or (3)
the nonprofit employee pays with a hospital check.
Sales to employees of all other nonprofit organizations are subject to sales tax regardless of
whether the nonprofit organization or the employee pays for the charges, unless an
exemption applies to the specific purchase (e.g., purchase of a newspaper). See SC Revenue
Procedure #03-6 – Exemption Certificates – Sales by Certain Nonprofit Organizations for
information on sales by certain nonprofit organizations.
SOUTH CAROINA DEPARTMENT OF REVENUE

s/Rick Reames III
Rick Reames III, Director
August 3
, 2015
Columbia, South Carolina

9

EXHIBIT A - Federal Government Employees
This chart summarizes the taxability6 of sales transactions with the Federal Government or
federal employees using the GSA SmartPay® program, the unique prefixes and account
numbers on each card, and a brief description of the government designed artwork and
wording on the card. See next page for a sample of the types of credit cards in use.

1st four
numbers on
the card

Purchase Card

Fleet Card

Travel Card

MasterCard
5565 or 5568

MasterCard
5565 or 5568

MasterCard
5565 or 5568

Visa
4486, 4614,
or 4716
Voyager
8699

6th digit indicates
billing method (see
below)
Visa
4486 or 4614

Wright
Express
5565
Green with a
road and
U.S. flag

6th digit indicates
billing method (see
below)
Blue with a jet and
U.S. flag

Centrally
billed

Centrally billed if 6th All fleet and purchase type
digit is 0, 6, 7, 8, or 9. transactions are centrally
billed;
Individually billed if
Travel type transactions are
6th digit is 1, 2, 3, or
centrally billed if the 6th digit
4.
is 6, 7, 8, or 9, otherwise
individually billed.
Depends on billing
Purchase and fleet transactions
method above;
are exempt;
centrally billed are
Travel transactions centrally
exempt; individually billed are exempt; individually
billed are taxable
billed are taxable

Visa
4486, 4614,or
4716

Card Design

Billing
Method

Red with
computer
keyboard and
U.S. flag and
“U.S.
Government Tax
Exempt”
Centrally billed

Exempt from
Tax
sales and use tax
Exemption
Applicability

Exempt from
sales and use
tax

6

Integrated Card – Used only
by the Dept. of Interior as of
11/08
MasterCard
5565 or 5568

Beige with an eagle and U.S.
flag

Code Section 12-36-2120(2). When the sale is between the retailer and the Federal Government
(i.e., the Federal Government is billed directly, the employee uses a credit card account that bills the
Federal Government, or the employee pays with a federal government check) the sale is exempt
from South Carolina sales and use tax. When the sale is between the retailer and the federal
employee (i.e., the federal employee is billed directly and reimbursed by the Federal Government)
the sale is subject to South Carolina sales and use tax. See SC Revenue Ruling #88-8.

10

Sample - SmartPay 2 Charge Cards
Used by Federal Government Employees
Fleet Card

Purchase Card

Travel Card

Integrated Card – Used by Dept. of Interior Only

11

EXHIBIT B – Foreign Diplomats
U.S. DEPARTMENT OF STATE – OFFICE OF FOREIGN MISSION
DIPLOMATIC TAX EXEMPTION CARDS – SAMPLE CARDS
1: Mission Tax Exemption Cards
Diplomatic Tax Exemption Cards that are labeled as “Mission Tax Exemption — Official
Purchases Only” are used by foreign diplomatic and consular missions to obtain exemption
from sales, occupancy, restaurant/meal, and other similar taxes imposed on their official
purchases in the United States necessary for the operation of the diplomatic or consular
mission. This card will have an owl or buffalo symbol indicating the specific type of tax
exemption. The person whose photo appears on such cards is the diplomatic or consular
mission’s point of contact and is the person responsible for ensuring the appropriate use of the
card. This individual does not need to be present when purchases are made. Note: All
purchases authorized for mission tax exemption must be paid for with a check or credit card
bearing the name of the associated diplomatic or consular mission.

front

back

front

back

12

OWL — Cards with this image are intended to be used solely in connection with
official purchases; the cardholder/mission is eligible for exemption from sales,
occupancy, restaurant/meal, and other similarly imposed taxes without restriction.
Hotel stays for the purpose of tourism, medical treatment, or leisure travel are not
considered necessary for the mission’s operations and functions.
BUFFALO — Cards with this image are intended to be used solely in connection
with official purchases; the cardholder/mission is subject to some degree of
restriction on exemption from sales, occupancy, restaurant/meal, and other similarly
imposed taxes. Hotel stays for the purpose of tourism, medical treatment, or leisure
travel are not considered necessary for the mission’s operations and functions.
2: Personal Tax Exemption Cards
Diplomatic Tax Exemption Cards that are labeled as “Personal Tax Exemption” are used by
eligible foreign diplomatic and consular mission members to obtain exemption from sales,
occupancy, restaurant/meal, and other similar taxes imposed on their personal purchases in the
United States. This card will have an eagle or deer symbol indicating the specific type of tax
exemption of the cardholder. The card is intended to be used solely for the benefit of the
individual identified and pictured on the card. The use of a personal Diplomatic Tax Exemption
Card is not transferable and cannot be loaned to a family member or friend, regardless of his/her
eligibility for exemption from taxation. There is no restriction on the form of payment
associated with using a personal Diplomatic Tax Exemption Card.

back

front

13

front

back

EAGLE — Cards with this image are intended to be used solely in connection with
personal purchases; the cardholder is eligible for exemption from sales, occupancy,
restaurant/meal, and other similarly imposed taxes without restriction.
DEER — Cards with this image are intended to be used solely in connection with
personal purchases; the cardholder is subject to some degree of restriction on
exemption from sales, occupancy, restaurant/meal, and other similarly imposed
taxes.

14

EXHIBIT C – Taipei Exemption Cards
AMERICAN INSTITUTE IN TAIWAN
TAX EXEMPTION CARDS – SAMPLE CARDS
1: Official Tax Exemption Cards Used by Taipei Economic and Cultural Representative
Office and Taipei Economic and Cultural Offices
Tax Exemption Cards that are labeled as “Official Tax Exemption – Official Purchases
Only” are used by the Taipei Economic and Cultural Representative Office or the Taipei
Economic and Cultural Offices to obtain exemption from sales, occupancy, restaurant/meal,
and other similar taxes imposed on purchases in the United States necessary for the office’s
operations and functions. Hotel stays for the purpose of tourism, medical treatment, or leisure
travel are not considered necessary for official operation or functions. This card will have an
owl symbol indicating the specific type of tax exemption. The person whose photo appears on
such cards is the point of contact. This individual does not need to be present when purchases
are made. Note: All purchases authorized for the official tax exemption must be paid for with
a check, credit card, or wire transfer in the name of the foreign government, the Taipei
Economic and Cultural Representative Office, or the Taipei Economic and Cultural Offices.

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OWL — Cards with this image are intended to be used solely in connection with
official purchases; the cardholder/office is eligible for exemption from sales,
occupancy, restaurant/meal, and other similarly imposed taxes without restriction.

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2: Personal Tax Exemption Cards
Tax Exemption Cards that are labeled as “Personal Tax Exemption” are used by eligible
personnel and their dependents to obtain exemption from sales, occupancy, restaurant/meal, and
other similar taxes imposed on their personal purchases in the United States. This card will have
an eagle symbol. The card is intended to be used solely for the benefit of the individual
identified and pictured on the card. The use of a personal Tax Exemption Card is not
transferable and cannot be loaned to a family member or friend, regardless of his/her eligibility
for exemption from taxation. There is no restriction on the form of payment associated with
using a personal Tax Exemption Card.

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EAGLE — Cards with this image are intended to be used solely in connection with
personal purchases; the cardholder is eligible for exemption from sales,
occupancy, restaurant/meal, and other similarly imposed taxes without restriction.

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