D.C. Mun. Regs. r. 9-491
The sale of or charge for placing a job seeker with an employer in the District which is 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 sales and use tax shall be imposed on the total amount of the sale of or charge for placing a job seeker with an employer in the District.
Example: A vendor located in Virginia seeks and locates a secretarial position in the District for a customer. The vendor places the customer in the secretarial position in the District. The placement of the customer occurs in the District and the fee charged for the placement of the customer in the secretarial position in the District shall be subject to the tax.
The vendor, as defined in § 493.5 of this chapter, shall separately state on the bill the charge for any placement in the District and indicate the amount of sales tax on the charge.
Example: An employment agency located in Wisconsin provides Customer C: employment testing, employment counseling and employment advice and places Customer C in a position located in the District. The testing, counseling, and advice are provided at the employment agency's office located in Wisconsin. Customer C is placed with an employer in the District. The employment agency bills Customer C two hundred dollars ($ 200) for all services:
Failure to separately state the charges for any service subject to the tax pursuant to § 491.1 of this chapter 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 § 491.1.
Example: An employment agency administers an employment test to a customer at its office located in Virginia. Later the agency searches for and locates in the District a management position for the customer. The customer is placed in the management position in the District and the employment agency bills the customer three hundred seventy-five dollars ($ 375) for the services provided in the District. Seventy five dollars ($ 75) represents the fee for administering the employment test and three hundred dollars ($ 300) represents the fee for the placement. The bill only shows the total three hundred seventy-five dollars ($ 375) fee for all services rendered. Although only the charge for the placement fee would be subject to the tax, the tax shall be imposed on the total three hundred seventy-five dollars ($ 375) fee for the employment testing and placement since the bill does not separately state the charge for the taxable service.
Any vendor, as defined in § 493.5 of this chapter, engaged in business in the District shall collect and remit to the Deputy Chief Financial Officer the sales tax on any sale of or charge for the placement of a job seeker with an employer in the District.
Any purchaser that pays for the service of placing a job seeker with an employer in the District 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 A: An employment agency located in Texas places a job seeker also located in Texas with its client employer located in the District. The employment agency bills the client employer two hundred dollars ($ 200) for the placement. The placement occurred in the District and shall be subject to the sales tax. If at the time the employment agency bills the client employer for the two hundred dollars ($ 200) placement charge, the employment agency fails to bill for the sales tax on the two hundred dollars ($ 200) charge, the client employer shall become liable for the use tax and shall remit the tax to the Deputy Chief Financial Officer.
Example B: An employment agency located in Virginia places its client job seeker also located in Virginia with an employer located in the District. The employment agency bills the client job seeker two hundred dollars ($ 200) for the placement. The placement occurs in the District and shall be subject to the tax. If at the time the employment agency bills the client job seeker for the two hundred dollars ($ 200) placement charge the employment agency fails to bill for the sales tax on the charge, the client job seeker shall become liable for the use tax and shall remit the tax to the Deputy Chief Financial Officer.
Any sale of or charge for a placement of a job seeker with an employer located outside of the District shall not be subject to the tax.
Example: All employment agency located in the District places a job seeker also located in the District with its client employer located in Virginia. The placement occurs outside of the District and shall not be subject to the tax.
D.C. Mun. Regs. r. 9-491