D. of Columbia

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District of Columbia
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District of Columbia
About
District of Columbia
About
District of Columbia
District of Columbia
District of Columbia

Standard rate

The standard rate in the District of Columbia for sales tax for 2024 is 6%.

Reduced rate

There is no reduced rate listed in the District of Columbia for sales tax.

Sales of tax-free products and services

There are no specific tax-free products and services listed in the District of Columbia.

Who must register sales tax in the District of Columbia

If you do have not a physical presence in the District of Columbia and you meet the threshold, you must register to collect and pay sales tax in the District of Columbia.
Standard rate 6% Reduced rate - Threshold $100,000
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Threshold

  • The amount of gross sales proceeds is $100,000 or more;
  • The remote retailer enters 200 or more separate transactions to sell tangible personal property to customers.
Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.

Online Marketplaces

Beginning on April 1, 2019, a “marketplace facilitator” must collect District sales tax on behalf of its “marketplace sellers”.

Registration procedure

Remote sellers should register as a new business online using Form FR-500 and indicate in the questionnaire that they are remote sellers.

Sales tax payment and filing date

  • If the tax liability of remote sellers is less than or equal to $200 per period, you must file an annual return. The annual sales and use tax return (filing form FR-800A) is due by January 20th of the subsequent year.
  • If your sales and use tax liabilities are between $201 and $1,200 per period, you must file your quarterly return FR-800Q. The quarterly sales and use tax return (filling form FR-800Q) is due by the 20th of the month after the quarter is reported.
  • If your sales and use tax liability are greater than or equal to $1201 per period, you must file a monthly return FR-800M. The monthly sales and use tax return (filling form FR-800M) is due by the 20th day of each calendar month.

Penalty and interest

  • A penalty of 5% per month if you fail to file a return or pay any tax due on time. It may not exceed an additional amount equal to 25% of the tax due;
  • The interest of 10% per year, compounded daily, on late payments.

 Exemption

October 10, 2024 148
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