D.C. Mun. Regs. r. 9-490
Any sale of or charge for the service of procuring, offering, or attempting to procure in the District a job seeker for an employer or employment for a job seeker provided after May 31, 1994, shall be subject to the sales and use taxes imposed in accordance with § 125 of the District of Columbia Sales Tax Act and § 212 of the District of Columbia Use Tax Act, approved May 27, 1949 (63 Stat. 115 and 126; D.C. Code §§ 47-2002 and 47-2202 ).
The service of procuring, offering or attempting to procure a job seeker for an employer or employment for a job seeker shall include, but not be limited to, the following:
Any sale of or charge for the service of procuring, offering or attempting to procure a job seeker for an employer or employment for a job seeker shall be subject to the tax if the service is performed in the District.
Example: An employment agency provides employment counseling to Customer C at its office located in the District. The service is performed in the District and the charge for the service shall be subject to the tax.
The sales and use tax shall be imposed on the total amount of any sale of or charge for the service of procuring, offering, or attempting to procure in the District a job seeker for an employer or employment for a job seeker.
Example: An employment agency administers an employment test for customer C. The employment agency bills Customer C twenty-five dollars ($ 25) for administering the employment test. At the time the employment agency bills Customer C for the employment test, the employment agency shall also bill for the sales tax on the twenty-five dollars ($ 25) charge for the employment test. The employment agency shall then remit the tax to the Deputy Chief Financial Officer in accordance with §§ 412 and 413 of this chapter and §§ 135 and 136 of the Sales Tax Act, approved May 27, 1949 (63 Stat. 118; D.C. Code §§ 47-2015 and 47-2016 ).
The vendor shall separately state on the bill the charge for any service performed in the District and indicate the amount of sales tax on the charge.
Example: An employment agency provides employment counseling, and employment advice and administers an employment test for Customer C. The counseling and advice are provided at the employment agency's office Located in the District. The employment test is administered at the employment agency's office located in Pennsylvania. The employment agency bills Customer C seventy-five dollars ($ 75) for all services:
Failure to separately state the charges for any taxable service performed in the District shall result in the taxation of the total charge for all services provided by the vendor which include any services subject to the tax pursuant to § 490.1.
Example: A vendor provides employment counseling for a customer at its office located in the District and administers an employment test at its office located in Virginia. The vendor bills the customer sixty dollars ($ 60) for the services of providing the employment counseling and administering the test. Twenty dollars ($ 20) represents the fee for the employment counseling and forty dollars ($ 40) represents the fee for administering the employment testing. The bill only shows the total sixty dollars ($ 60) charge for the counseling and testing services. Although only the charge for the employment counseling would be subject to the tax under this section, the tax shall be imposed on the total sixty dollars ($ 60) charge since the bill does not separately state the fee for the taxable service.
Any vendor, as defined in § 493.5 of this chapter, that performs in the District the service of procuring, offering or attempting to procure in the District a job seeker for an employer or employment for a job seeker shall be considered to be engaged in business in the District.
Example: An employment agency administers a typing test at its office located in the District. The employment agency bills the customer twenty dollars ($ 20) for the typing test. The typing test is performed in the District and shall be subject to the sales tax. At the time the employment agency bills for the typing test, the employment agency shall also bill for the sales tax on the twenty dollars ($ 20) charge for the typing test. The employment agency shall remit the tax to the Deputy Chief Financial Officer in accordance with §§ 412 and 413 of this chapter and §§ 135 and 136 of the Sales Tax Act, approved May 27, 1949 (63 Stat. 118; D.C. Code §§ 47-2015 and 47-2016 ).
Any vendor, as defined in § 493.5 of this chapter, engaged in business in the District shall collect and remit the D.C. sales tax on any sale of or charge for the service of procuring, offering or attempting to procure in the District a job seeker for an employer or employment for a Job seeker.
The vendor shall collect the total sales tax imposed on the sale of or charge for the service of procuring, offering, attempting to procure in the District a job seeker with an employer or employment for a job seeker once the service has been rendered and the first bill, invoice or receipt of payment is sent to the purchaser.
Example A: A vendor provides employment counseling and advice and administers a typing and dictation test at its office located in the District. The vendor bills the client three hundred seventy-five dollars ($ 375) for the services rendered in the District. The vendor mails client the bill for a first payment of one hundred dollars ($ 100) due at the end of the month. The bill shall include the full amount of sales tax on the total three hundred seventy-five dollars ($ 375) fee for the services rendered. The vendor shall remit the tax to the Deputy Chief Financial Officer in accordance with §§ 412 and 413 of this chapter and §§ 135 and 136 of the Sales Tax Act, approved May 27, 1949 (63 Stat. 118; D.C. Code §§ 47-2015 and 47-2016 ).
Example B: A vendor provides employment counseling and advice and administers a typing and dictation test at its office located in the District. The cost for rendering those services in the District is three hundred seventy-five dollars ($ 375). The client pays for the service and is provided a receipt for payment. The receipt for payment shall include the full amount of the sales tax on the three hundred seventy-five dollars ($ 375) for the services rendered. At the time the vendor provides the client the receipt for payment, the vendor shall also collect the sales tax. The vendor shall remit the tax to the Deputy Chief Financial Officer in accordance with §§ 412 and 413 of this chapter and §§ 135 and 136 of the Sales Tax Act, approved May 27, 1949 (63 Stat. 118; D.C. Code §§ 47-2015 and 47-2016 ).
Example C: A vendor provides employment counseling and advice and administers a typing test at its office located in the District. The vendor bills the client three hundred seventy-five dollars ($ 375) for the services rendered in the District. The vendor mails its client the bill for full payment of the three hundred seventy-five dollars ($ 375) charge for the services rendered in the District. The bill shall include the full amount of the sales tax on the charge for the services rendered in the District. The vendor shall remit the sales tax to the Deputy Chief Financial Officer in accordance with §§ 412 and 413 of this chapter and §§ 135 and 136 of the Sales Tax Act, approved May 27, 1949 (63 Stat. 118; D.C. Code §§ 47-2015 and 47-2016 ).
Any purchaser that pays for the service of procuring, offering or attempting to procure in the District a job seeker for an employer or employment for a job seeker for which the sales tax was not collected and remitted to the Deputy Chief Financial Officer shall be subject to the use tax and shall remit the tax in accordance with § 215 of the Use Tax Act, approved May 27, 1949 (63 Stat. 127; D.C. Code § 47-2205 ).
Example: An employment agency provides employment counseling and advice at its office located in the District. The employment agency bills The customer seventy-five dollars ($ 75) for the counseling and advice. If at the time the employment agency bills the customer for the counseling and advice the employment agency fails to bill for the sales tax on the seventy-five dollars ($ 75) charge, the customer shall become liable for the use tax and shall remit the tax to the Deputy Chief Financial Officer.
Any sale of or charge for the service of procuring, offering, or attempting to procure a job seeker for an employer or employment for a job seeker that is performed outside of the District shall not be subject to the tax.
Example: An employment agency provides employment counseling to customer C at its office located in Wisconsin. The employment agency bills Customer C sixty dollars ($ 60) for the counseling. The service was performed outside of the District. Therefore, the sale for or charge of the service shall not be subject to the tax.
D.C. Mun. Regs. r. 9-490