What is excise duty on wine
In Canada, wine produced or packaged in a licensed wine premises is subject to excise duty under the Excise Act, 2001, administered by the Canada Revenue Agency (CRA). Duty rates depend on alcohol content and volume. Small producers may qualify for reduced rates or exemptions. Cepaos calculates duty based on your production records so your returns are accurate.
Prerequisites
- Excise licence number entered in Settings > Organisation.
- Wine lots with alcohol by volume recorded in the Lab module.
- Sales and shipment records in the cellar book.
Step by step
1. Access excise duty module
In the sidebar, under Compliance, click Excise Duty. The current reporting period summary appears.
2. Review duty calculations
Cepaos calculates duty for each lot based on CRA rates:
| Alcohol Range | Duty Rate (per litre) |
|---|---|
| Not exceeding 1.2% | Exempt |
| 1.2% to 7% | Rate A |
| 7% to 14.9% | Rate B |
| 15% and above | Rate C |
Rates are updated when CRA publishes changes. Cepaos applies the correct rate per lot based on lab-recorded ABV.
3. Apply small producer deductions
If your annual production is under the CRA threshold, click Apply Small Producer Rate. Cepaos adjusts the calculations accordingly.
4. Generate return
Click Generate Excise Return. Cepaos produces a summary matching the CRA B261 form format:
- Total wine produced (litres) by duty category.
- Total wine removed from premises.
- Duty payable after deductions.
5. Export and file
Click Export > PDF for your records or Export > CSV for electronic filing through CRA My Business Account.
6. Archive payment confirmation
After filing and payment, attach the CRA confirmation to the return in Cepaos.
Frequently asked questions
Does Cepaos file directly with CRA?
No. Cepaos generates the data in the required format. You file through CRA My Business Account.
How does duty apply to wine sold at the winery?
All wine removed from licensed premises for consumption is dutiable, including cellar door sales. Cepaos tracks all removal events.