Guidance: Procurement policy note 03/14: promoting tax compliance

This sets out the scope, background and detailed guidance for the policy of using the procurement process to promote tax compliance.

The guidance contained in this procurement policy note (PPN) is being updated in view of the Public Contracts Regulations 2015. Until a new PPN is issued, any organisations intending to take a selection decision using this guidance should consult beforehand with Government Commercial Agency by contacting the helpdesk on 0345 410 2222 or emailing [email protected].

A new policy was announced in the March 2013 Budget on the use of the procurement process to promote tax compliance. This applies with effect from 1 April 2013 to all central government contracts of more than £5 million. Suppliers bidding for these government contracts must self-certify their tax compliance.

This Action Note replaces Action Note 06/13 dated 25 July 2013. It sets out the scope and background of the new policy, advises how to take account of it in procurement documentation and provides further detailed guidance at Annex A on how departments should assess suppliers’ responses and including new clauses in contract terms.