Sales & Excise Tax FAQ's

This document explains how we handle sales tax on Vinebase, and how you can set your winery up to collect sales tax for any states where you have a requirement to do so. It also explains excise tax.

SALES TAX

How are sales taxes handled on Vinebase?

How we handle sales tax on Vinebase varies state-by-state, and can be summarized by the flow chart below.

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Where does Vinebase collect & remit sales taxes on my behalf?

In recent years, states across the US have introduced new laws that have an impact on online marketplaces like Vinebase. These Marketplace Facilitator laws dictate that if Vinebase has operators in a state a sale is made into, Vinebase is required to remit sales tax on behalf of a marketplace seller (winery). Concretely, this means that we calculate the correct sales tax rate, charge the buyer and send any tax owed directly to the state.

At this time, Vinebase is remitting state sales tax on all orders shipped to the following states:

State Date
Texas January 1st, 2021
Illinois February 1st, 2021
California August 1st, 2021
New York
August 1st, 2021
North Carolina September 1st, 2021

If you have made sales to any states after the date in the table above, you can assume that we have remitted any sales tax amounts due. 

Please note that if you have a sales tax obligation in any of these states, you may still be required to file a sales tax return. The specifics vary state-by-state, but most will require you to simply state the gross sales and that sale was made through Vinebase.

How can I request a copy of the sales made through Vinebase for tax reporting purposes?

You can request a full report of your sales that will be remitted by Vinebase by emailing support@vinebase.com.

How can I specify in which states I would like Vinebase to collect sales tax?

Vinebase will not collect sales taxes for you unless you explicitly tell us to do so.

You can see all states that you are currently set up to ship to in your Winery Dashboard, under SettingsShipping.

When you add a new state to ship to, you will be asked to specify if you would like us to collect sales tax for you. 

Finally, note that if both you and Vinebase have an obligation to remit sales tax in a certain state, it will be the responsibility of Vinebase to remit the sales tax over any sales.

Please note that Vinebase cannot provide specific tax advice. If you are unsure on whether you have a sales tax obligation in a certain state, we recommend that you consult with an accountant or tax specialist. You may also have to acquire a sales tax license/permit to remit sales taxes in specific states. For general inquiries, the following guide may be of help.

How does Vinebase calculate the right amount of sales tax on every order?

We partner with Avalara for the purposes of calculating the right amount of sales tax on every transaction. For every transaction, we pass relevant information (amounts, product codes, ship-from location, ship-to location) into their state-of-the-art tax calculation engine to compute the right amount.

Will my winery name show up on your Vinebase's Sales Tax Report for marketplace facilitator states?

No! When Vinebase files our Marketplace-Remitted Sales Tax for a state, we share the aggregate, so no individual sale or winery shows up.

Do I need to submit my own sales tax reports for states where Vinebase is a marketplace facilitator?

Most states require a sales tax report, even if you do not owe any amount. 

California Reporting Requirements

Even though Vinebase is a marketplace facilitator, you are required to submit sales tax reports. It is recommended that you report all sales within your Gross Sales and deduct the entirety of those sales as Nontaxable sales - labeled as Marketplace Facilitator Sales.

Illinois Reporting Requirements

  • Include all sales process through Vinebase in "Total Sales" of your Illinois Sales Tax Return
  • Deduct this amount on Schedule A as "Other" and enter the description "Sales Reported, and Sales Tax Paid, by Marketplace Facilitator."
  • This will result in zero "Taxable Sales" and zero "Sales Tax" due.

New York Reporting Requirements

  • You are required to submit sales tax reports. Report all sales processed through Vinebase within your Gross Sales and deduct them as Exempt Sales.

North Carolina Reporting Requirements

  • Consult with a tax advisor for recommendations

Texas Reporting Requirements

  • Include Marketplace Facilitated Sales in Total Sales.
  • Exclude Marketplace Facilitated Sales from Taxable Sales.
  • This will result in zero Taxable Sales and zero Sales Tax Due on your Sales Tax Returns.

EXCISE TAX

Excise taxes are due on most beverage alcohol products produced in or imported into the U.S. These taxes aren’t paid directly by the consumer but are instead baked into the price of a product or service. For more information on excise tax, the following guide on excise tax may be of help.

Please note that Vinebase cannot provide specific tax advice. If you are unsure on whether you have a sales tax obligation in a certain state, we recommend that you consult with an accountant or tax specialist. 

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