Is the GSA SmartPay Account Tax Exempt?

Is the GSA SmartPay Account tax exempt?

In some cases, when using certain types of accounts, government account holders are exempt from taxes on their purchases.  Please visit the SmartTax section of the website for more information on taxes.  

• Centrally Billed Account (CBA): Expenses are directly paid by the Federal Government and should not be charged state taxes.

• Individually Billed Account (IBA): Expenses are paid by the account holder and, depending on the state, may be eligible for state tax exemption.

• Tax Advantage Account: Combines an IBA and CBA. Rental car and lodging expenses are billed as a CBA and should not be charged state taxes. All other expenses (e.g., meals) are billed as an IBA and may be eligible for state taxation.