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). The duty is charged per litre of wine according to its alcohol content. A small producer of wine may be exempt from duty on the packaged wine it produces while it qualifies (CRA memorandum EDM4-1-2). Cepaos calculates the duty from the volume and alcohol content you enter so you can prepare your return.

Prerequisites

Excise licence number entered in Settings > Organisation.
Alcohol by volume of each wine you package.
Packaged and removed volumes for the reporting period.

Step by step

1. Open the excise duty module

In the sidebar, under Compliance, open Excise Duty and then the B265 worksheet.

2. Review duty rates

The CRA rates per litre of wine in force from April 1, 2026 (CRA Excise Duty Notice EDN104) are:

Alcohol content	Duty rate (per litre of wine)
Not more than 1.2%	CAD 0.022
More than 1.2% but not more than 7%	CAD 0.358
More than 7%	CAD 0.745

The rate depends only on alcohol content: there is no separate rate for fortified or sparkling wine. Rates are indexed every April 1.

3. Small producer exemption

If you qualify as a small producer of wine for the month under EDM4-1-2, tick the small producer box. The exemption covers only wine you produced and packaged; imported wine and blends with imported wine stay dutiable. You still have to file the return every period.

4. Prepare the return figures

Enter the volume and alcohol content and click Calculate Duty. Cepaos shows the duty owing and the due date for Form B265 (Excise Duty Return – Wine Licensee): the last day of the month following the reporting period.

5. File with the CRA

File Form B265 and pay through CRA My Business Account with your own access. Cepaos does not file for you.

Frequently asked questions

Does Cepaos file directly with CRA?

No. Cepaos prepares the figures. You file Form B265 through CRA My Business Account.