Set Tax Classes
Overview
Set tax classes for your production lots in Blended to ensure accurate classification and compliance with regulations.
Set Tax Classes
Go to Production
Select the lots
Open the Other menu
Choose Tax Class
Set the effective date
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. For example, if you use certain production techniques like fortification or carbonation, which are not covered under the primary tax class, then the secondary method can help capture these details.
Here are examples of scenarios where the Secondary Production Method setting is applicable:
If your wine is fortified with spirits, you can select 'Fortified' as the secondary production method to track this specific detail.
If your wine is carbonated, you may choose 'Carbonated' to indicate this additional process.
Some wines undergo secondary fermentation; in such cases, you can select an appropriate option to reflect this process.
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.