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Set Tax Classes

Overview

Set tax classes for your production lots in Blended to ensure accurate classification and compliance with regulations.

Set Tax Classes

  1. Go to Production

  2. Select the lots

  3. Open the Other menu

  4. Choose Tax Class

  5. Set the effective date

  6. Save changes

Understanding Tax Classes

Tax Class Selection

In Blended, selecting the appropriate tax class for your production lots is important for both compliance and accurate tracking. Below are the various tax class options available and their specific uses.

  • ABV ≤ 16%: Used for wines with an alcohol by volume (ABV) of 16% or less. These wines generally fall under a lower tax rate.

  • 16% < ABV ≤ 21%: Applied to wines with an ABV greater than 16% but less than or equal to 21%. This category has a higher tax rate due to the increased alcohol content.

  • 21% < ABV ≤ 24%: For wines with an ABV greater than 21% but less than or equal to 24%. These wines are subject to an even higher tax rate due to their higher alcohol content.

  • Artificially Carbonated: For wines that have carbonation added artificially. This includes sparkling wines that are not naturally fermented in the bottle.

  • Sparkling (Bottle Fermented): Applied to wines that are sparkling and have undergone secondary fermentation in the bottle. Examples include traditional Champagne.

  • Sparkling (Bulk Processed): For bulk-processed sparkling wines, where carbonation is typically added in large tanks before bottling.

  • Hard Cider: Used specifically for hard cider products. This category has its own set of tax regulations and rates.

Choosing the correct tax class ensures that you are compliant with regulatory requirements and that your records accurately reflect the type of product you are managing. This helps avoid penalties and ensures that your data is accurate for internal tracking and reporting.

Choose the Right Tax Class

Selecting the correct tax class is essential for compliance and accurate tracking. Options include: ABV ≤ 16%, for lower alcohol content wines; 16% < ABV ≤ 21%, for medium-range wines; 21% < ABV ≤ 24%, for higher alcohol content; Artificially Carbonated, for wines with added carbonation; Sparkling (Bottle Fermented), for naturally carbonated wines; Sparkling (Bulk Processed), for mass-produced sparkling wines; and Hard Cider, for cider products.

Secondary Production Method

Secondary Production Method is an option available in Blended that allows you to categorize your production lots beyond the primary tax class. This additional classification helps ensure accurate record-keeping and compliance with specific production regulations.

You should use the Secondary Production Method option when your wine undergoes additional processes that affect its classification.

Here are examples of scenarios where the Secondary Production Method setting is applicable:

  • Produced by sweetening: Use this secondary method for wines that have had sweetening materials added to them in conjunction with the primary tax class change. Blended will shift volume from tax class to tax class using the used/produced by sweetening lines.

  • Produced by the addition of wine spirits: Use this secondary method for fortification during the time period you added the spirits. In conjunction with the secondary method, you may also update the tax class the wine is in. Blended will shift volume from tax class to tax class using the used/produced by spirits lines.

Using the Secondary Production Method option helps ensure that your production records are complete and comply with regulatory requirements. This can be critical for accurate reporting and compliance with industry standards.

Frequently Asked Questions

  • A tax class in Blended determines the tax category for wine production lots. It helps ensure proper taxation based on alcohol content, carbonation, or cider classification.

  • To edit a tax class in Blended, go to Production, select the lot, click Designate Tax Class under the Other dropdown, update the details in the modal window, and hit Save.

  • Use the secondary method if your wine requires an additional tax classification, provided you've used this method in your production before.

  • If the date is wrong, click the calendar icon next to the Effective Date field in the Edit Tax Class modal to select the correct date before saving your changes.