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Alchohol Sales

Sales Tax Changes for Beverage Alcohol Clients


Once Americans took to ordering alcohol online the way pinot noir grapes take to cool climates, legislators and tax officials began to examine compliance requirements with an eye toward improving them. Change is therefore afoot.

Sep 9th 2021
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The ongoing pandemic heightened demand for direct-to-consumer (DTC) beverage alcohol sales, turning a spotlight on the industry and sales tax laws, therein.

Some of the top compliance challenges facing your beverage alcohol seller clients include laws surrounding cocktails to go, third-party providers, economic nexus, fulfillment houses, and more. Read on for details.

Neat New Option: Cocktails to Go

Although the United States is generally in a better place than it was a year ago, the persistent coronavirus pandemic continues to challenge certain traditional business models. With COVID-19 cases back on the rise, states, counties, and cities are reconsidering mask mandates and social distancing requirements. These are particularly hard on the food and beverage industry.

Takeout has been a lifeline for businesses (and consumers) throughout the pandemic, as have loosened restrictions on cocktails to go. Numerous states allowed restaurants and bars to sell alcohol to go when they couldn’t serve patrons in-house.

Since the sky didn’t fall, many states decided to allow delivery and takeout sales of alcohol on a permanent basis. Alcohol-to-go policies have been widely toasted, but can complicate compliance for businesses, particularly if a third-party delivery service is involved.

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