Direct-to-consumer (DtC) shipping of alcohol requires producers, shippers and retailers to stay compliant with numerous rules and regulations. Tax determination and reporting is one of those key areas, and also presents a unique challenge to shippers. Regulations on DtC shipping require shippers to recognize and manage a tax burden that is much broader than if […]
As states have adopted new economic nexus laws over the last several years, vastly expanding whom states can make responsible for sales taxes obligations, direct-to-consumer (DtC) shippers of alcohol have had to adjust, though not as much as most remote sellers. Generally, DtC alcohol shippers are required to collect and remit sales taxes in the […]
The digitalization of tax is imminent. Is your organization staying current with the ERP evolution? In our latest Spotlight Report, created in partnership with Americas’ SAP Users’ Group (ASUG), “The State of Indirect Tax Compliance Among SAP Customers” we explore how SAP customers are planning for the future of indirect tax compliance. Research from our […]
Earlier today, Sovos announced it has acquired 1099 Pro, a California-based company that delivers tax information reporting software and services to tens of thousands of small and medium-sized businesses (SMBs), in addition to enterprise organizations. 1099 Pro has been a market leader for three decades, and it brings talented team members to Sovos to extend […]
DtC cider shipping can be complicated in that whether a state permits it often depends on how a state defines “cider.” Ciders are a general category of beverage alcohol products, made from fermented apples or pears, with a low to moderate alcohol content and often sold as an alternative to malt beverages. In terms of […]
A recent review by the state of Idaho Alcohol Beverage Control (ABC) division’s legal team has conclusively determined that out-of-state retailers have no permission to ship any beverage alcohol products direct-to-consumer (DtC) in the state. This determination reverses previous interpretations of Idaho’s laws, which had been understood to permit such shipments As the DtC wine […]
Summer is winding down and the wine landscape continues to fluctuate in response to the pandemic. Staying mindful of marketplace data will ensure the industry can properly adjust to any ebbs and flows, helping wine producers, retailers and consumers alike. Nielsen is collaborating with Wines Vines Analytics and Sovos ShipCompliant to provide a much more […]
Understanding brand ownership and self-production requirements We’ve previously discussed how direct-to-consumer (DtC) shipping of alcohol has numerous requirements and regulations for producers and retailers. Everything from getting licensed to brand label registration details to age verification protocols must be considered. But what happens when an alcohol producer (e.g., a winery, brewery, distillery or cidery) wants […]
If you are currently enrolled in Delaware’s voluntary disclosure agreement (VDA) program, it is very important to provide periodic updates to the VDA administrator contact assigned to you – either Faegre Drinker Biddle & Reath LLP or TL2Q, LLC.. All correspondence from the state or it’s administrators should be treated seriously and responded to in […]
A review of the passage of House Bill 1545, also known as the 2019 TABC Sunset Bill, has compelled the Texas Alcoholic Beverage Commission (TABC) to majorly revamp their alcohol license process and fees. The following changes are set to be effective September 1, 2021. What changes are occurring? Texas is moving from 75 to […]
My colleague, Lisa Holmquest, previously discussed what can be expected from implementing new sales tax software. Sovos aims to deliver value quickly and reduce the cost and effort required to integrate with a new system. Additionally, we want our customers to feel supported 24/7, even when things don’t go as expected. When it comes to […]
Direct-to-consumer (DtC) shipping continues to grow in popularity, something that has not gone unnoticed by retailers. While alcohol producers enjoy broad access to the DtC shipping market, there are nuanced alcohol retailer DtC shipping laws and regulatory rules for compliance. A key consideration for retailers looking to ship alcohol DtC is recognizing the states that […]
As offices around the world begin to reopen after nearly 18 months of employees working from home, many buildings aren’t as full as they used to be. In fact, 2.7% of the workforce quit their jobs in June 2021 alone. This is caused in large part by what many are calling the “Great Resignation.” Finance […]
The State of Delaware Department of Finance sent out letters to Holders requesting verification of annual unclaimed property reports for property presumed abandoned as of December 31, 2020. These Delaware reporting verification letters are targeted to holders that previously reported unclaimed property to Delaware but did not submit a 2020 report, which was due on […]
Brand label registration is an essential part of the process of selling alcohol. And while many suppliers are aware of these requirements for three-tier distribution, they can often overlook them when it comes to direct-to-consumer (DtC) shipping. Alcohol labels, whether on a bottle, can or keg, have lots of information that is highly regulated, both […]
Wine and beer new product registrations also see positive growth in Q2 2021 The beverage alcohol industry continues to fluctuate as it accounts for varying consumer buying patterns, due in large part to the COVID-19 pandemic. The second quarter of 2021 saw positive growth in new product registrations, with the spirit category leading the way. […]
The hotly anticipated crypto 1099 information reporting tax law changes may finally come to light this week. In an interesting twist to the bipartisan infrastructure bill negotiations, Senator Rob Portman (R)-OH added specific 1099 reporting tax law changes for digital asset transactions. The additions to the bill, entitled “Enhancement of Information Reporting for Brokers and […]
In the “Statement on a Two-Pillar Solution to Address the Tax Challenges Arising From the Digitalization of the Economy” issued on 1 July 2021, members of the G20 Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) have agreed upon a framework to move forward with a global tax reform deal. This will address the […]