Annual Sales And Use Tax - General Information 8 Return Instructions

ADVERTISEMENT

ANNUAL SALES AND USE TAX - GENERAL INFORMATION
1.
FILING PERIOD AND DUE DATES:
An
annual return
is due on or before
6.
EXEMPT AND NONTAXABLE SALES:
The following are examples of
January 20th of the year after the filing period. If the due date falls on Saturday,
exempt and, therefore, nontaxable sales:
Sunday or a legal holiday, the return is due on the next business day. To avoid
(a)
Sales to the United States or the Government of the District of Columbia
delinquency notices, a return must be filed even if no sales were made or no
or any instrumentalities thereof.
sales or use tax is due.
(b)
Sales to semipublic institutions with a D.C. Certificate of Exemption
2.
FORMS:
A booklet with all the necessary forms and instructions is mailed to
(FR-551) or with a temporary certificate of exemption.
each registered taxpayer. Taxpayers are responsible for filing and paying on
(c)
Sales to a purchaser that furnished you with a D.C. Certificate of Resale
time whether or not the forms are received.
(FR-368).
3.
PAYMENTS:
Make checks or money orders payable to the
D.C. Treasurer
(d)
Sales delivered to a purchaser outside the District of Columbia.
and mail with annual sales and use tax returns to the D.C. Government,
NOTE
:
Charitable organizations must collect sales tax from the purchasers of items
P.O. Box 679, Ben Franklin Station, Washington, D.C. 20044-0679. Payments
sold
and remit the tax to the D.C. Treasurer.
may be made in person at any branch of the First Union Bank located in the
7.
RULES FOR REPORTING SALES AND GROSS RECEIPTS:
Report
District.
cash, credit or charge sales, including conditional sales, for the period the sale
4.
CHARGE FOR DISHONORED CHECKS:
There is a charge of $50 for
occurred even if a portion of the sales price has not been collected. Do not deduct
each dishonored check issued to the District of Columbia.
from taxable sales the refunds you issued for previously reported sales (see
5.
TAX RATES:
overpayment of sales or use tax) or sales of property that was subsequently
(a)
5.75% rate, in general, applies to:
repossessed. You may deduct uncollectible balances of accounts (bad debts).
(1)
Sales of tangible personal property delivered in the District of
Subsequent collections of bad debts must be reported in full in the period in
Columbia.
which they are collected. Expenses incurred in collecting bad debts are not
deductible. (See Title 9 of the D.C. Municipal Regulations.)
(2)
Rentals of tangible personal property, except rentals of textiles to
residential users.
NOTE
:
Title 9 of the D.C. Municipal Regulations may be purchased from the Office
of Documents, 441 Fourth St., N.W., Suite 520-S. Washington, D.C. 20001.
(3)
Sales of newspapers and publications.
8.
PENALTY AND INTEREST CHARGES:
(4)
Sales of food or drink sold through vending machines and sales of
snack food.
(a)
There is a penalty of 5 percent per month for failure to file a return or pay
any tax due on time. The penalty is computed on the unpaid tax for each
(5)
Sales of the following services: real property maintenance;
month, or a fraction of a month, that the return is not filed or the tax is not
landscaping; employment; personnel placement; data processing;
paid. The penalty is not to exceed 25 percent of the tax due.
information; production, fabrication or printing; repairs or alterations
of tangible personal property; copying, photocopying, duplicating,
(b)
There is a 20 percent penalty on any understatement of taxes due if the
or mailing; delivery; and laundering, dry cleaning, or pressing, except
understatement exceeds either 10 percent of the tax determined to be due
if the service is performed by coin-operated equipment.
or $2,000, whichever is the greater. An understatement of taxes is the
difference between the amount shown on the original or amended return
(6)
Sales of stationary two-way radio services, telegraph services,
and the amount of tax determined to be due as a result of an audit or
teletypewriter services, teleconferencing services, “900”, “976”,
review.
“915”, and other “900” type telecommunication services, telephone
answering services, and coin-operated telephone services. Sale of
(c)
Interest of 1.5 percent per month, or portion of a month, will be assessed
these services are exempt from sales tax if charges to the end-user
on a late return or late payment, without regard to any extension.
are subject to District of Columbia gross receipts or toll
9.
CRIMINAL PENALTIES:
Any person required to file a return or report, or
telecommunication tax.
perform any act under the provisions of the Sales and Use Tax Act who:
(7)
Admissions to certain public events (for detailed information refer
(a)
Fails or neglects to file such return or report or perform such act within the
to the “General Information - Sales and Use Taxes” pamphlet
time required shall, upon conviction thereof, be fined not more than $1,000
FR-379).
or imprisoned for not more than six months, or both, for each and every
(8)
Sales of local telephone service, gas, oil and electricity for commercial
failure or neglect.
use.
(b)
Willfully fails or refuses to file such return or report or perform such act
(9)
Sales of solid fuel or steam.
within the time required shall, upon conviction thereof, be fined not more
than $5,000 or imprisoned for not more than one year, or both.
(b)
8% rate applies
to sales of alcoholic beverages sold for consumption off
the premises.
These penalties are in addition to penalties for false statements under D.C. Code
§22-2514 and any other penalties provided in the Sales and Use Tax Act.
(c)
10% rate applies to:
Corporate officers may be held personally liable for the payment of taxes owed
(1) All sales of food or drink served or prepared for immediate consumption
if the payment is not remitted to the District.
or sold in or by restaurants, lunch counters, cafeterias, hotels, caterers,
10.
USE TAX REPORTING:
You are required to report the cost of all personal
boarding houses, carry-out shops and other similar places of business. This
property and taxable services used or consumed by you within the District for
includes sales of food or drink in a heated state, cold drinks dispensed on a
which sales tax has not been paid to any state. This includes the cost of items
self-service basis into a container; and frozen yogurt, ice cream, ice milk
purchased under a Certificate of Resale and withdrawn from stock for personal
or sherbet sold in quantities of less than one pint.
use or for use in the conduct of your business.
(2) Rental of motor vehicles and utility trailers, except those used for
11.
OVERPAYMENT OF SALES OR USE TAX:
An overpayment of sales or
commercial purposes.
use tax for a prior year should not be taken as a credit on the tax return of a
(3) Sales of alcoholic beverages sold for consumption on the premises.
subsequent period. To receive a refund of the overpayment, you must file a Claim
(4) Sales of prepaid telephone calling cards.
for Refund of Sales and Use Tax, Form FR-331. If additional information is
(d)
12% rate applies
to charges for the service of parking, storing or keeping
needed, please call (202) 727-4TAX (4829).
motor vehicles or trailers.
12.
CREDIT FOR COLLECTION EXPENSES:
A taxpayer who timely files a
(e)
14.5% rate applies
to charges for rooms, lodgings or accommodations
return and pays the tax due in full may take a credit on Line 11, Column C,
furnished to transients.
against the sales tax due
. (The purpose of the credit is to reduce the taxpayer’s
cost of collecting and remitting sales tax.) The credit is equal to the lesser of 1
NOTE
:
Sales tax must be charged and collected on the actual selling price.
percent of the sales tax due or $5,000.

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 2