Malt and Vinous Beverage Taxes are paid by bottlers and wholesalers of malt and vinous beverages. The tax is computed on gallons sold by bottlers or wholesalers. The tax is paid monthly or quarterly, depending on the amount of tax due. If less than $2,000 was remitted for the previous year, a taxpayer may file every quarter. Otherwise, returns must be filed monthly.
Tax on Ready-to-Drink Spirits Beverages
Ready-to-drink spirits beverages is a new category of beverages subject to malt and vinous beverage tax. The rate for ready-to-drink spirits beverages is $1.10 per gallon sold to retailers. Note that this rate is different than the rates for malt and vinous beverages. Manufacturers, bottlers, and wholesalers will pay the tax on ready-to-drink spirits in the same manner and in the same circumstances in which tax is due for malt or vinous beverages. The related returns, forms, and worksheets provided by the Department of Taxes have all been updated to accommodate this new category of beverages.
Definition of Ready-to-Drink Spirits Beverage
“Ready-to-drink spirits beverage” means an alcoholic beverage containing more than one percent alcohol by volume and not more than 12 percent alcohol by volume at 60 degrees Fahrenheit obtained by distillation, by chemical synthesis, or through concentration by freezing and mixed with nonalcoholic beverages, flavoring, or coloring materials. Ready-to-drink spirits beverages may also contain water, fruit juices, fruit adjuncts, sugar, carbon dioxide, preservatives, and other ingredients. “Ready-to-drink spirits beverage” does not include a beverage that is packaged in containers greater than 24 fluid ounces in volume.
Please note: Any ready-to-drink spirits beverage that contains more than 12 percent alcohol by volume at 60 degrees Fahrenheit or is packaged in containers greater than 24 fluid ounces in volume is considered spirits under Vermont law. These beverages are not subject to malt and vinous beverage tax but are subject to different taxes and regulations by the Division of Liquor Control.
How to File and Pay
All businesses filing Form MVB-612 must file their returns and pay any tax due electronically. This requirement also applies when filing Form MVB-613, the Malt and Vinous Beverage Distribution Report. The method for filing and paying any tax due is handled through myVTax, the tax department’s free, secure, online filing site. When a Form MVB-612 return is filed through myVTax the preparer will also be prompted to complete Form MVB-613, reporting any distributions made during the reporting period. For questions, please contact the Department of Taxes at 802-828-2551 or tax.business@vermont.gov.
How to Report Distributions
Before reporting your distributions for the first time, you must download the reporting template. Please see the guides and distribution template below for more information about how to submit the monthly return and upload the distribution report at myVTax.