Madshine Posted January 23, 2019 Share Posted January 23, 2019 Just crunching some numbers for my business plan. How exactly is the Excise tax charged? Is it per litre of 95% produced or is it per litre of sales no matter what percentage it is? Say i sell a product that is 500ml but only 20%. Will it get charged half the tax because its half litre or will it get charged basically 20% of the tax? Link to comment Share on other sites More sharing options...
Silk City Distillers Posted January 23, 2019 Share Posted January 23, 2019 Federal is based on Proof Gallons, which is a measure that normalizes the volume into gallons at 100 proof. Link to comment Share on other sites More sharing options...
Madshine Posted January 23, 2019 Author Share Posted January 23, 2019 Pretty sure its calculated different here in Canada Silk Link to comment Share on other sites More sharing options...
Silk City Distillers Posted January 23, 2019 Share Posted January 23, 2019 Oh damn, there is a Canada forum??? 2 Link to comment Share on other sites More sharing options...
Madshine Posted January 23, 2019 Author Share Posted January 23, 2019 Isnt this the Canadian section?🤪 Link to comment Share on other sites More sharing options...
Glenlyon Posted January 23, 2019 Share Posted January 23, 2019 The way that the tax is calculated - is for every LAA of product you create - it is subject to a $12.109 (until tomorrow or so) tax. So, you brew up a batch and using your gov't certified thermometer and hydrometers you would figure out that you created - let's say, 10 LAA that, times the aforementioned tax rate equals what you owe. Now there is a catch. You can pay up front for the booze, or you can pay when you move the finished bottled product into the retail enviornment. It is better and general practice to pay the warehouse (up front) - that way all the booze in your warehouse is yours. Just make sure you don't double pay when you move those spirits into your retail spaces. Link to comment Share on other sites More sharing options...
Madshine Posted January 23, 2019 Author Share Posted January 23, 2019 Is there a formula or calculator used for it somewhere Glen? Link to comment Share on other sites More sharing options...
Glenlyon Posted January 23, 2019 Share Posted January 23, 2019 Yes. On the CRA/Gov't of Canada website excise area you can find the actual way to calculate the LAA - (I don't have the url off hand, sorry) but in a nutshell - Your product weight X Specific gravity X ABV = LAA. Link to comment Share on other sites More sharing options...
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