Beer and Wine Tax

On July 1, 2010, certain manufacturers' fees previously paid to the Alcohol and Gaming Commission of Ontario (AGCO) by breweries, microbreweries and wineries were replaced with beer and wine taxes. These taxes are administered by the Ministry of Finance.

Ontario beer, wine and wine cooler manufacturers collect beer and wine taxes and remit them to the Ministry of Finance.

Purchasers of beer, wine and wine coolers from the Liquor Control Board of Ontario (LCBO) and consumers that make their own beer, wine and wine coolers are not subject to the taxes.

Why did Ontario introduce these taxes?

The 2009 Ontario Budget proposed to replace certain alcohol and other fees, levies and charges imposed by the Alcohol and Gaming Commission of Ontario (AGCO) with taxes to enhance their operational structure and legislative clarity.

On December 15, 2009, changes to the Alcohol and Gaming Regulation and Public Protection Act, 1996, became law, replacing certain fees, levies and charges with taxes.

The change also supports Ontario's commitment to improve government-to-business services by streamlining processes and providing beer and wine manufacturers with convenient tools that will make it easy for them to meet their reporting and remittance obligations.

I am a business owner or operator in the beer and wine industry, how does this affect me?

As part of the transition to beer and wine taxes, certain AGCO processes in place for manufacturers changed.

Under the new tax-based structure, Ontario beer, wine and wine cooler manufacturers collect the beer and wine taxes and remit them to the ministry by the 20th day of each month. This process is similar to other tax statutes, where the industry manufacturer acts as an agent of the Minister to collect the taxes in trust and remit them by the required date.

Learn more about how the changes affect Ontario's beer and wine industries.

Tax-Included Pricing Requirements

All beer sold by beer vendors to purchasers and all wine and wine coolers sold by wineries at winery retail stores to purchasers must be made available for sale at a price that includes all beer and wine taxes payable.

Beer vendors and wineries must make available to purchasers such information with respect to the amount of the beer and wine taxes included in the price as the Minister specifies and by a method approved by the Minister. These requirements are outlined in Tax Bulletin 3-2010 Tax-Included Pricing and List of Microbrewers - Requirements for Beer Vendors and Wineries.

What is the role of the Alcohol and Gaming Commission of Ontario (AGCO) after July 1, 2010?

The AGCO (and LCBO) continue to be responsible for the general regulation of the beer and wine industries in Ontario, including the licensing of alcohol manufacturers and sellers.

Beginning July 1, 2010, the AGCO no longer collects certain alcohol fees and the Ministry of Finance now administers the beer and wine taxes. This includes reporting and remitting the beer and wine taxes to the Ministry of Finance. The ministry is also responsible for audits.

About Your Tax Return

Learn how to complete your beer, wine or wine cooler return and schedules.

Information about filing requirements, supporting schedules, penalties for late filing and failure to remit tax collected or payable and payment information for remitting the tax is also provided.

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