The standard rate in the District of Columbia for sales tax for 2024 is 6%.
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.
- 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.
The special rules are applicable to the SAAS business.
Beginning on April 1, 2019, a “marketplace facilitator” must collect District sales tax on behalf of its “marketplace sellers”.
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.