Are compliance checks done in real time? Compliance checks must happen in real time to ensure a smooth transaction for the customer, and to provide a safety net for yourself. This begins with precise age verification. It's essential to confirm that only adults of legal drinking age (LDA) can make purchases online. Subsequently, compliance extends to accurately calculating and applying the appropriate tax rates, taking into account the location of the sale and the destination of the order.  Are the compliance rules automatically setup?  Producers should not have to worry about managing their own set of tax rates, shipping limits, and pre-purchase age verification as this easily leads to mistakes. Compliance solutions should have a built-in tax rate table, working on 9-digit zip codes, so you feel confident all taxes are correct.  Can states rules be manually bypassed? This should be a no brainer, if states rules can be bypassed, you should question how compliant you

Excise tax rates affect the price of every alcoholic beverage. Because of CBMA credits, federal excise taxes are more confusing than ever. And each state has different rates depending on commodity and ABV. Now some states have begun to establish special tax rates for spirits-based RTDs. Virtually everybody in your organization needs quick access to excise tax rates. DTC shippers pay the excise taxes in the states where their customers live. Although wholesalers often pay the state excise taxes on wine sold through the three-tier system, knowing what your wholesaler is paying helps suppliers set the price and determine the margin on your products. The Digest of Wine and Spirits Law’s Excise Tax table makes it easy to see how your products will be taxed, everywhere in the nation. More details are found in the Excise Taxes article for each state. Both are updated regularly. Take the hassle out of looking up the excise tax rates for wine and distilled spirits. Subscribe today and

After U.S. Supreme Court Case South Dakota v. Wayfair, Inc. made fundamental policy changes in the way states collect internet-based sales and uses taxes, the recent emergence of Marketplace Facilitators across the nation has enhanced states’ ability to gather more revenue and more closely monitor eCommerce. While at the same time, it is great for direct sales in the wine industry by simplifying reporting for the sellers.   In general, a Marketplace Facilitator contracts with marketplace sellers to facilitate the sale of their products through an electronic or physical marketplace, which varies by state in terms of regulations, tax remittance, and licensing requirements. Some functions are universal, such as payment processing, customer service activities, and providing an infrastructure for ecommerce transactions. Commonly known Marketplace Facilitators are Amazon, Etsy, and eBay.   Marketplace Facilitators in the wine industry can quickly remove the criticism from som

Join us for an overview of compliance requirements for beverage alcohol suppliers including different tax types, presented by Shannon Fahey of Avalara. Avalara will give an update on recent regulation changes for DTC fulfillment houses, licenses and tax, plus enforcement trends (including age verification), and how to avoid risk. Bonus: Get a preview of the Commerce7 integration with Avalara’s compliance solutions. Agenda: Compliance requirements for beverage alcohol suppliers Different tax types for wineries Recent regulation updates for DTC fulfillment, licenses, and tax State enforcement updates The role of age verification in beverage alcohol compliance Key steps for maintaining compliance Commerce7 Integration with Avalara’s Compliance Solutions Join us July 6, 10am PT Register Now

In our continuing series of reviewing the issues around compliant direct sales and shipping, we review the topic of tax calculation, collection, and remittance that are perhaps the most important considerations for state regulators in the alcoholic beverage industry at all levels of government.   Taxes are one of four focus areas for regulators. Others include Age Verification, Licensing and Compliance, and Auditability.  Think of the four areas as ALTA.   Wineries and other producers must navigate a complex maze of sales and excise taxes. With more than 3,800 individual tax rates across local, state, and federal jurisdictions, with a maze of over 2.6 million zip codes, there is a lot to manage. This means there are endless ways to incorrectly calculate what is owed to stay legally compliant. Being delinquent in tax payments is a serious threat to any enterprise and can lead to nightmare scenarios that push the most honest, well-intentioned business owners