Effective October 1, 2010, sellers of retail prepaid wireless telecommunications services in the District of Columbia were required to collect from consumers a two percent charge on all retail sales of prepaid wireless telecommunications services.  The charge, known as the D.C. Prepaid Wireless Telecommunications Charge, applies to prepaid wireless telecommunications services that allow a caller to dial 911 to access the 911 system, and applies regardless of whether the services are provided via a card, remote sales, or by other means such as an authorization code on a receipt.  The charge is in addition to the 10 percent sales tax already charged on all telecommunications retail transactions, and must be separately stated on all invoices, receipts, or other proof of sale documentation given to the customer.

Please refer to the official Notice for additional details: DC Prepaid Wireless Telecommunication Charge

Clients with questions regarding this Advisory or who require assistance with the new tax should contact the Attorney responsible for their account.