Intructions For Annual Sales And Use Tax Return - District Of Columbia, Washington printable pdf download

ANNUAL SALES AND USE TAX RETURN – GENERAL INFORMATION

1. FILING PERIOD AND DUE DATES: An annual return is due on or before

(a) Sales to the United States or the Government of the District of

January 20th of the year after the reporting period. If the due date falls on a

Columbia or any instrumentalities thereof;

Saturday, Sunday or legal holiday, the return is due on the next business day.

(b) Sales to semipublic institutions that have a D.C. Certificate of Exemp-

To avoid a delinquency notice, a return must be filed even if no sales were

tion (FR-551) or those with a temporary certificate of exemption;

made or no sales or use tax is due.

2. FORMS: A booklet with all the necessary forms and instructions is mailed to

(FR-368);

each registered taxpayer. Taxpayers are responsible for filing and paying on

(d) Sales delivered to a purchaser outside the District of Columbia; and

time whether or not the forms are received.

(e) Certain sales within the District by a Qualified High Technology

3. PAYMENTS: Make the check or money order payable to the D.C. Treasurer

Company (QHTC) and certain sales to a QHTC.

and mail it with the annual sales and use tax return to the Government of the

NOTE: Charitable organizations must collect sales tax from the purchasers of

District of Columbia, P.O. Box 679, Ben Franklin Station, Washington, D.C.

items sold and remit the tax as indicated in item 3.

20044-0679. Payments may be made in person at any branch of the First

RULES FOR REPORTING SALES AND GROSS RECEIPTS: Report

Union Bank located in the District. Please write on your payment FR-800A,

cash, credit or charge sales, including conditional sales, for the period the

your Federal Employer Identification Number and the tax year.

sale occurred even if a portion of the sales price has not been collected. Do

4. CHARGE FOR DISHONORED CHECKS: There is a charge of $50 for

not deduct from taxable sales the refunds you issued for previously report-

each dishonored check issued to the District of Columbia.

ed sales (see overpayment of sales or use tax) or sales of property that was

subsequently repossessed. You may deduct uncollectable balances of

5. TAX RATES:

(a) 5.75% rate, in general, applies to:

accounts (bad debts). Subsequent collections of bad debts must be reported

(1) Sales of tangible personal property delivered in the District of

in full in the period in which they are collected. Expenses incurred in col-

Columbia;

lecting bad debts are not deductible. (See Title 9 of the D.C Municipal

(2) Rentals of tangible personal property, except rentals of textiles to res-

Regulations.)

idential users;

NOTE: Title 9 of the D.C. Municipal Regulations may be purchased from the

(3) Sales of newspapers and publications;

Office of Documents and Administrative Issuances, 441 Fourth St., N.W., Suite

(4) Sales of food or drink sold through vending machines; (Note: snack

520-S, Washington, D.C. 20001.

foods sold prior to June 9 were subject to the 5.75% rate.

PENALTY AND INTEREST CHARGES:

(5) Sales of the following services: real property maintenance; landscap-

(a) There is a penalty of 5 percent per month imposed for the failure to file

ing; employment; personnel placement; data processing; information;

a return or pay any tax due on time. The penalty is computed on the

production, fabrication or printing; repairs or alterations of tangible

unpaid tax for each month, or fraction of a month, that the return is not

personal property; copying, photocopying, duplicating, or mailing;

filed or the tax is not paid. The penalty is not to exceed 25 percent of the

delivery; and laundering, dry cleaning, or pressing, except if the serv-

tax due.

ice is performed by coin-operated equipment;

(b) There is a penalty of 20 percent of the portion of an underpayment of

(6) Sales of stationary two-way radio services, telegraph services, tele-

taxes which is attributable to negligence. Negligence is a failure to make

typewriter services, teleconferencing services, “900”, “976”, “915”,

a reasonable attempt to comply with the law or to exercise ordinary and

and other “900” type telecommunication services, telephone answer-

reasonable care in preparing tax returns without the intent to defraud.

ing services, and coin-operated telephone services. Sales of these serv-

One indication of negligence is a failure to keep adequate books and

ices are exempt from sales tax if charges to the end-user are subject to

records.

District of Columbia gross receipts or toll telecommunication tax;

(7) Admissions to certain public events (for detailed information refer to

a late return or late payment, without regard to any extension.

the pamphlet “General Information—Sales and Use Taxes” FR-379;

CRIMINAL PENALTIES: Any person required to file a return or report,

(8) Sales of local telephone service, gas, oil and electricity for commercial

or perform any act under the provisions of the Sales and Use Tax Act who:

use; and

(a) Fails or neglects to file the return or report or perform such act within

(9) Sales of solid fuel or steam.

the time required shall, upon conviction thereof, be fined not more than

(b) 8% rate applies to sales of alcoholic beverages sold for consumption off

$1,000 or imprisoned for not more than six months, or both, for each

the premises.

and every failure or neglect.

(b) Willfully fails or refuses to file the return or report or perform such act

(1) All sales of food or drink served or prepared for immediate consump-

within the time required shall, upon conviction thereof, be fined not

tion or sold in or by restaurants, lunch counters, cafeterias, hotels,

more than $5,000 or imprisoned for not more than one year, or both.

caterers, boarding houses, carry-out shops and other similar places of

These penalties are in addition to penalties for false statements under D.C.

business. This includes sales of food or drink in a heated state, cold

Code §22-2514 and any other applicable penalties. Corporate officers may

drinks dispensed on a self-service basis into a container; and frozen

be held personally liable for the payment of taxes owed if the payment is

yogurt, ice cream, ice milk or sherbet sold in quantities of less than

not remitted to the District.

one pint;

10. USE TAX REPORTING: You are required to report use tax on the cost of

(2) Rental of motor vehicles and utility trailers, except those used for

all tangible personal property and taxable services used or consumed by you

commercial purposes;

within the District for which sales tax has not been paid to any state. This

(3) Sales of alcoholic beverages sold for consumption on the premises;

includes the cost of items purchased under a Certificate of Resale or with-

and

drawn from stock for personal use or for use in the conduct of your busi-

(4) Sales of prepaid telephone calling cards.

ness.

(d) 12% rate applies to charges for the service of parking, storing or keep-

11. OVERPAYMENT OF SALES OR USE TAX: An overpayment of sales

ing motor vehicles or trailers.

or use tax for a prior year should not be taken as a credit on the tax return

(e) 14.5% rate applies to charges for rooms, lodgings or accommodations

of a subsequent period. To receive a refund of the overpayment, you must

furnished to transients.

file a Claim for Refund of Sales and Use Tax, Form FR-331. If additional

NOTE: Sales tax must be charged and collected on the actual selling price.

information is needed, please call (202) 727-4TAX (4829).

EXEMPT AND NONTAXABLE SALES: The following are examples of

exempt and, therefore, nontaxable sales:

Intructions For Annual Sales And Use Tax Return - District Of Columbia, Washington

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