Alcohol Excise Tax FAQ's

Alcohol tax is a tax applied to alcohol products. You may also hear the term “alcohol tax” used interchangeably with the term “excise tax” or “alcohol excise tax”. 

What is alcohol tax?

Unlike sales tax which is applied to the total sale amount, alcohol tax is typically taxed at a volume rate (either per gallon or per liter). Different types of alcohol may also have different tax rates. For example, in many states, sparkling wine is taxed at a different rate than “flat” wine. 

How is alcohol tax calculated?

Vinebase integrates with Avalara to provide real-time and up-to-date alcohol tax calculations for all transactions run through Vinebase. That way, every sale in every state is guaranteed to have the up to date and accurate tax amounts.

Where is alcohol tax calculated?

Alcohol tax is collected at both the state and federal levels. Each state has its own set of rules for sales and alcohol taxes. Wineries must also pay federal excise taxes to the TTB yearly based on the total volume of alcohol sold.

How are alcohol taxes charged to the consumer?

A few states have an exception where you are allowed to pass the excise tax through to the consumer. Vinebase is smart with this and will add them to your customer’s order if this applies, so you will not have to pay them out of pocket.

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 the excise tax, the following guide on excise tax may be of help.

Who is responsible for remitting alcohol taxes?

Wineries are responsible for remitting alcohol taxes.

Can Vinebase help me with my taxes?

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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