Digital goods, including music, books, movies and games, are subject to sales and use tax in the District of Columbia. As noted, in prior temporary legislation, sales tax law for digital goods was effective January 1, 2019.
Which Digital Sales are Taxable?
The legislation lists the types of digital goods that are taxable. Tax applies whether the transaction is:
- a one-time sale or
- a subscription.
Digital goods can be delivered:
- by electronic transfer;
- streaming; or
- access via the web.
Internet Access Services
The laws defining digital goods and transactions does not change tax laws for accessing Internet services.
Act 22-584 (D.C.B. 22-914), Laws 2017, approved January 18, 2019, effective after a 30-day congressional review period