Taxed When Produced
Wine is declared produced upon completion of fermentation or removal from the fermenter. At that point the volume of wine is to be determined, recorded, and reported to the TTB as wine produced. An alcohol test should then be performed to determine the tax class of the wine.
Removal of Wine
The amount of tax to be paid is determined when wine is removed from bonded premises for consumption or sale. 27 CFR 24.270
When wine is removed from a bonded winery for consumption or sale, a record must be kept containing the following information:
- Date of removal
- Name and address of the person removed, unless sale is less than 80 liters.
- Volume, kind (class and type), and alcohol content of the wine
This needs to be summarized daily by tax class in wine gallons to the nearest tenth gallon. An invoice containing the information above is a common removal record.
Wine excise tax can be paid semi-monthly, quarterly, or annually. 27 CFR 24.271, 273
Untaxpaid Removals
Wine excise tax does not have to be paid for certain removals from a bonded wine premise if proper records are kept. These untaxpaid removals include:
- testing on bonded premises or by an outside laboratory (27 CFR 24.96-97)
- tasting on bonded premises (27 CFR 24.97)
- destruction (27 CFR 24.294)
- breakage (27 CFR 24.308)
- export out of the United States (27 CFR 24.292)
- ...and several others.
This entry was posted
at Friday, September 26, 2008
and is filed under
Alchohol and Tobacco Tax and Trade Bureau,
Taxes
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