For DC businesses there is a new requirement under the
DC Code regarding so-called “use” taxes. Beginning with the 12-month period
ending September 30, 2012, any employer that is required to file a DC
withholding tax return, but is not required to collect and remit sales taxes,
is required to file an annual use tax
return. The return, Form
FR-800A, must be filed on or before October 20th of each year, and any use
taxes due must be remitted with the return.
Most States imposes a “use tax” on certain personal
property purchased for use in their state. The use tax complements the sales tax by taxing the use of goods
inside the State on which no sales tax has been paid. Typically, this is
property that was purchased from a seller outside of the state.
Unlike sales
taxes, which are charged and collected by the vendor, the use tax is
self-reported by the purchaser.
You should contact your tax advisor for advice on your specific situation.
For more information, please contact info@dentalcpas.com
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