Friday, October 12, 2012

District of Columbia "use" Tax Impacts Dentists


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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