Sales of Digital Goods Taxable in District of Columbia

Effective January 1, 2019, sales of digital goods into the District of Columbia are subject to sales and use tax as a result of emergency legislation passed by the District. Digital goods subject to District of Columbia sales and use tax include:

  • Digital audiovisual works
  • Digital audio works
  • Digital books
  • Digital codes
  • Digital applications and games
  • Any other otherwise taxable tangible personal property electronically or digitally delivered, whether electronically or digitally delivered, streamed, or accessed

Digital goods are subject to taxation whether purchased singly, by subscription, or in any other manner. Additionally, purchases of maintenance, updates, and support for digital goods are subject to tax.

Per the legislation, “digital goods” does not include cable television service, satellite relay television service, or any other distribution of television, video, or radio service subject to tax under Section 47-2501.01. In addition, Internet access service does not include digital goods. (Act 22-556 (D.C.B. 22-1070), Laws 2018, effective December 31, 2018, for a 90-day period that expires March 31, 2019)

Posted on January 11, 2019