Tax-paid wines are those which have had the Excise tax paid and which now must kept separate from wines that are in bond (taxes not yet paid). Check with your Compliance officer or your legal adviser to determine when the Excise tax should be paid and the wine moved/dispatched as tax-paid.
Setting up a tax-paid area
Head into Winery setup > Infrastructure > Storage area
Click New storage area.
Note: it is good practice to include the tax state in the name of storage area so that stock isn't moved in the wrong area.
Managing tax-paid wines
There are some simple rules to keep in mind when dealing with tax-paid stock.
Only the first operation (movement into a tax-paid area or dispatch as tax-paid) will show up on the TTB report. Once a wine/stock item is identified as tax-paid it is never again reported on the 5120 report.
- Wine is bottled on 1/15/2019 into your warehouse and routed to a bonded storage area.
- The wine is immediately moved into a tax-paid storage area.
- The TTB report for January 2019 will show the bottled gallons in the Removed tax-paid (line 8) of SECTION B - BOTTLED WINES.
- When the wine is dispatched to a retail customer, Removed tax-paid, in February 2019, the dispatch will not be included Removed tax-paid (line 8) of SECTION B - BOTTLED WINES.
For the most part, when packaging (bottling) or manufacturing, the Route to on the operation should be to a bonded storage area; then perform a Move from the bonded area to a tax-paid area. The results on the TTB report are the same as the example above; only the first tax-paid operation will show up on the TTB report as Removed tax-paid.
Dispatches performed as Removed tax-paid may be routed from either a bonded or a tax-paid storage area.
When doing a bulk intake, NEVER set the tax state to tax-paid. Bulk wine, by definition, isn't a finished product.
Tax-paid wines returned to bond
On rare occasions, bottled wines on which Excise tax has already been paid has to be returned; the most common event is tax-paid wine that is returned and decanted back to bulk.
Find/create the packaged wine.
Perform a stock receival and route the wine into a tax-paid storage area.
Perform a stock movement from the tax-paid area to a bonded area.
You will be asked to confirm that you want the volume to appear on the TTB report as Taxpaid wine returned to bond.
This is how this volume will appear on your TTB report.
Wines that have already had their taxes paid and are returned to bond may be eligible for a refund. Check with your Compliance officer or your legal adviser.