The DC government is starting to send notices to area businesses requiring them to file a sales and use return. The Office of the Chief Financial Officer is now opening use tax accounts for those employers who are not generally required to collect and remit sales taxes. Notices of Business Registration, which include account numbers, frequency of filing, and use tax filing forms (Form FR-800A), are being sent to employers.
States and DC collect sales taxes on transactions within their jurisdictions. Most also impose a use tax on goods purchased outside, but used within, their jurisdictions (i.e., online purchases, items acquired in nontaxing states). In its Budget Support Act of 2012, the DC Council enacted the Employer Use Tax Return Act of 2012 requiring all service employers that file a DC withholding tax return to also file a use tax return even if they are not otherwise required to collect and remit sales tax. Beginning with the 12-month period ending September 30, 2012, the annual use tax return is due on or before October 20 of each year.
Please consult your Baker Tilly tax professional for assistance in determining which purchases or services may be taxable.