District of Columbia

District of Columbia

Standard rate:

6% 

Reduced rate:

Sales tax-free products and services:

Who must register sales tax:

If you have not a physical presence in the District of Columbia and you are meet the threshold, you must register to collect and pay sales tax in the District of Columbia.

Threshold:

  • the amount of gross sales proceeds is $ 100,000 or more;

or

  • the remote retailer enters 200 or more separate transactions to sell tangible personal property to customers.

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 $ 1200 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 being reported. 

If your sales and use tax liability is 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 a late payment;

 Exemption: