Value Added Tax (VAT) Reimbursement Procedures


The appropriations, Department of State Foreign Operations and Related Programs and Foreign Assistance, states VAT is an unallowable cost. USAID in contract clauses and grant standard provisions mention if USAID provides VAT reimbursement procedures and the implementer does not follow the procedures VAT is an unallowable cost. Implementers still confused, USAID issued an acquisition and assistance policy directive.  Even with these directives, exemption or reimbursement procedures, documentation and effectiveness vary by country.  Congress through appropriations mandates the US Department of State to report to Congress yearly the implementer name and VAT amounts that have not been reimbursed.  Implementing VAT reimbursement procedures are critical to program start-up, implementation and financial management.


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Price: $149.00


Each year USAID contractors and grantees procure millions of dollars in goods to implement US foreign assistance programs with assessed VAT exceeding 200 percent.  VAT exemption or reimbursement procedures vary by country.  Wouldn’t it be nice to know the procedures during the bidding preparation?  What staffing to budget?  Is the host government really going to reimburse the VAT before close-out?  At program start-up wouldn’t it be nice to get the reimbursement procedures on the first day!  Tired of going back to the vender for five original invoices? With this product, it will take all the guesswork out of VAT exemption.  Just buy the product, comply with the reimbursement procedures and relax?

Content and Objective

  1. What US foreign assistance is exempt or reimbursed host country VAT?
  2. What are the procedures for VAT exemption or reimbursement?
  3. When should an organization begin the process to seek VAT reimbursement?
  4. What documentation is required for exemption or reimbursement of VAT?
  5. How does the host government reimburse VAT?


This product is a program implementation tool and potential buyers are those who anticipate winning a USAID grant or contract. This product makes it easier for new, emerging and growing organizations to comply with established procedures to seek VAT exemption or reimbursement.

Registration (Payment)

Under “Proposal Tools” at the top of the home page, select the product “Value Added Tax Reimbursement.” The buyer may select one or more countries before making a payment.  If the country is not listed e-mail  Documents are in PDF format and download is limited to one time only.  If you have technical problems during download email Organizations may distribute the document within the buyer’s organization.

Who Should Purchase the Product

Development Essentials offers VAT Reimbursement Procedures for USAID funded implementers of foreign assistance.  While delivery of US government foreign assistance is no longer limited to USAID, other organizations (and their implementers) e.g. US Department of  State, Centers for Disease Control and Prevention, US Department of Agriculture, Department of Defense and Millennium Challenge Corporation may use the procedures to seek VAT reimbursement.

After the Purchase

Organizations will know at program start-up, VAT exemption or reimbursement procedures.  Organizations will no longer fear–VAT becoming an unallowable cost.

Terms and Conditions

The Development Essentials’ on-line store offers products for sale to non-government organizations engaged in U.S. foreign assistance implementation with the goal to streamline the proposal and application submission process. When appropriately applied the products can enhance all phases of the bidding process: research, planning, drafting and submission. Products offered may take the form of downloadable documents or mailed software and manuals and are distributed solely by Development Essentials to the buyer and its organization. Some products copy right may apply and are marked accordingly. By purchasing the product, the organization agrees not to copy, print, e-mail or fax the product with the intention to redistribute or resell the product to another organization or individuals not the buyer under penalty of law. Electronic download is limited to one time only. For any questions regarding the products or terms and conditions contact

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