4 SALES TAX AND USE TAX
If you engage in business activities in the District of Columbia, you must collect sales and use tax from the purchaser for the
following business activities:
BUSINESS TAXES DC DOING BUSINESS GUIDE 2018/2019 53
Taxable Business Activity Tax Rate
Tangible personal property delivered to a customer in DC 6% effective October 1, 2018
Certain foods and drinks sold at retail 6% effective October 1, 2018
Food or drink served or prepared for immediate consumption or sold in or by restaurants, lunch
counters, cafeterias, hotels, caterers, boarding houses, carryout shops, and similar places of business
10.25% effective October 1, 2018
Vehicles, prepaid telephone cards, tickets sold for baseball games, merchandise sold
at the Liquor sold for consumption off the premises, rental baseball stadium, tickets
sold for events at the Verizon Center and merchandise sold at the Verizon Center
10.25% effective October 1, 2018
and it will be two different lines on
the return, one for off premise and
one for rental vehicles
Certain services including, but not limited to, security, data processing, information, real property
maintenance services, car washing, bottled water delivery, bowling alleys or billiard parlors, carpet
and upholstery, cleaning, health club, tanning, and service of storage of household goods
6% effective October 1, 2018
Rental of rooms to transients 14.95% effective October 1, 2018
Admissions to certain public events that take place in DC 6% effective October 1, 2018
The service of parking, storing, or keeping motor vehicles and trailers in DC 18%
Street Vendor and Mobile Food Services minimum sales tax ($375 minimum quarterly sales tax) 10.25% (Food)
6% effective October 1, 2018
(Other Sales)
Medical marijuana 6.%
In addition, you must file the Form FR-800M, the sales and use tax return by the 20th day of each month following the reporting
period; the FR-800Q (quarterly sales tax return) by the 20th day of the month following the reporting quarter; and the FR-800A
(annual sales tax return) on the 20th of October. The annual sales tax year covers the period from October 1 through September 30 of
the following year. All sales tax is on a quarterly basis, October 1 through September 30 of each year.