District of Columbia Sales Tax Changes for DTC

As a result of the U.S. Supreme Court’s decision in South Dakota v. Wayfair, the District of Columbia has passed legislation requiring some remote sellers, including wineries, without a physical presence in D.C. to start collecting and remitting the 10.25% sales tax. Prior to this, only wineries located in D.C. were required to do so.

Wineries that ship directly to consumers in D.C. must collect and remit sales tax beginning Jan. 1, 2019 if in 2018 or this year they:

• collect more than $100,000 of gross receipts from retail sales delivered into the District OR
• ship more than 200 separate retail sales delivered in the District.

Wineries that meet or exceed these thresholds for collecting sales tax should register as a new business in D.C. by completing the tax registration form on the Office of Tax and Revenue (OTR) website. The sales tax rate for off-premises wine sales is 10.25%.

Wineries with less than $100,000 in gross receipts or fewer than 200 separate transactions shipped into D.C. need not take any action. For more details, see the OTR Notice 2019-02 South Dakota V. Wayfair, Inc.