TITLE: Washington DC Sales Tax Rise to 7% in 2026 and Fake IRS Crypto Letters: What Global Sellers Must Know
If you sell goods, digital products, SaaS, or taxable services into Washington DC, two USA compliance issues require your attention today.
The District of Columbia will increase its general sales tax rate from 6% to 7% from 1 October 2026. Separately, IRS Criminal Investigation has warned cryptocurrency holders about fake IRS letters promoting a nonexistent “Digital Asset Compliance Portal”.
These updates matter to international sellers in the UK, EU, Canada, and Australia. They affect your sales tax setup, filing process, customer communications, and cybersecurity controls.
Update your Washington DC sales tax settings before 1 October
The District of Columbia Office of Tax and Revenue (OTR) confirms that its general sales tax rate remains 6.0% through 30 September 2026. The rate increases to 7.0% for periods beginning on or after 1 October 2026.
The change applies to taxable sales of:
- Tangible personal property.
- Digital goods.
- Taxable services.
- Data processing services.
- SaaS and similar cloud-based software services.
- Digital downloads and e-books.
B2B sales are not automatically exempt. If you provide taxable SaaS or digital services to a business customer in Washington DC, the transaction may still be subject to District sales tax.
The change is based on the District’s Fiscal Year 2026 Budget Support legislation. You should update your tax engine, ecommerce platform, invoicing system, and reporting process before the new rate begins.
Check whether you have Washington DC economic nexus
A foreign or out-of-state seller may have economic nexus in the District even without an office, warehouse, or employee there.
According to OTR, a remote seller must register, collect, and remit District sales tax when it exceeds either threshold in the previous or current calendar year:
- More than $100,000 in gross receipts from retail sales delivered into Washington DC, or
- More than 200 separate retail sales delivered into the District.
This applies to foreign remote sellers. A UK Limited Company, USA LLC, Canadian Corporation, or Australian business can therefore have a Washington DC sales tax obligation.
Do not wait until year-end to review your position. Track your District sales by:
- Customer location.
- Transaction count.
- Gross receipts.
- Product or service type.
- Sales channel.
- Tax collected.
- Marketplace and direct website activity.
OTR also confirms that sales made through your own website and through a marketplace count when determining whether you have crossed the remote seller threshold.
Separate marketplace collections from direct sales
Marketplace facilitators are required to collect and remit Washington DC sales tax on marketplace transactions. This can apply to platforms such as Amazon, eBay, and Etsy.
However, your compliance responsibility does not disappear. You still need to:
- Reconcile marketplace tax reports against your sales ledger.
- Check whether direct sales create a separate collection obligation.
- Review sales tax treatment for products sold outside the marketplace.
- Retain marketplace statements and transaction records.
- Avoid charging tax twice to customers.
Shopify and direct website sales remain your responsibility. The platform may calculate tax, but you remain responsible for ensuring that the correct products, customer locations, rates, registrations, and filings are configured.
If you sell from the UK, this is where structured ecommerce bookkeeping becomes essential. An ecommerce accountant UK team should be able to reconcile Amazon, Shopify, payment processors, and your accounting records. The same applies if you need an amazon seller accountant uk or support with Shopify accounting UK for cross-border sales.
File through MyTax.DC.gov by the deadline
Washington DC sales tax returns are filed electronically through MyTax.DC.gov.
Returns and payments are generally due by the 20th day of the month following the reporting period. For example, a monthly return for October is normally due by 20 November.
Late filing can create penalties and interest. OTR states that late returns with tax due may attract a late filing penalty ranging from 5% to 25%, with interest also accruing.
Use the official OTR sales and use tax FAQs to confirm registration, filing, marketplace, and remote seller requirements.
Ignore fake IRS letters about the “Digital Asset Compliance Portal”
On 30 July 2026, IRS Criminal Investigation issued a fraud alert about fake letters targeting cryptocurrency holders.
The letters look official. They tell recipients to scan a QR code and register for a supposed “Digital Asset Compliance Portal”. The QR code leads to a fraudulent website designed to imitate IRS.gov.
The IRS has confirmed that:
- It did not send these letters.
- It does not operate a Digital Asset Compliance Portal.
- The letters are part of a scam.
- The fraudulent website may request personal information, wallet details, or exchange credentials.
Never scan an unsolicited tax QR code
If you receive an unexpected letter claiming to be from the IRS, do not:
- Scan the QR code.
- Visit the website shown in the letter.
- Call a phone number printed in the letter.
- Provide your Social Security number or business credentials.
- Share wallet recovery phrases or private keys.
- Provide exchange passwords or multi-factor authentication codes.
- Transfer cryptocurrency or make a payment.
Scammers often use urgent deadlines, threats of penalties, and official-looking branding to pressure you into acting quickly. Slow down and verify every request through an independently accessed official government website.
Legitimate tax compliance does not require you to hand over a wallet recovery phrase or private key. No genuine tax authority should need those credentials to verify your tax position.
Act quickly if you already shared information
If you scanned the QR code or entered information on the fraudulent website, take action immediately:
- Change passwords for affected accounts.
- Enable multi-factor authentication.
- Contact your bank and cryptocurrency exchange.
- Review recent account activity and withdrawal requests.
- Move assets only through a secure, verified process if your provider recommends it.
- Preserve the letter, envelope, screenshots, emails, and transaction records.
- Report the incident to IRS Criminal Investigation through the official IRS reporting process.
The IRS also advises victims to monitor financial accounts and report suspicious activity promptly.
International seller compliance checklist
Use this short checklist to reduce your risk:
- Confirm whether your Washington DC sales exceed $100,000 or 200 transactions.
- Review taxable goods, digital products, SaaS, e-books, and data processing services.
- Update your DC sales tax rate from 6% to 7% for transactions beginning on or after 1 October 2026.
- Verify that your tax engine and ecommerce platform reflect the new rate correctly.
- Reconcile marketplace facilitator collections against your own sales records.
- Ensure direct sales via Shopify or your website are configured to collect DC tax when nexus applies.
- File returns electronically through MyTax.DC.gov by the 20th of the following month.
- Be alert for unsolicited letters referencing a “Digital Asset Compliance Portal” and ignore them.
- Never scan QR codes or share credentials or wallet keys with unverified parties claiming to be tax authorities.
- Act swiftly to secure accounts and report if you have interacted with the fraudulent portal.
