Permit
DTC Permit
- Required:Yes
- Fee:$100
- Expiration:1 yr from issue date
Sales Tax
Sales Tax Required
- State:6%
- Local:No
- Tax on Shipping:Yes
Excise Tax
Excise & Wholesale Sales Tax Required
- Excise Tax: $0.50/gal
- Wholesale Tax: 10% of wholesale price*
*If a wholesale price is not readily available, the direct shipper licensee shall calculate the wholesale cost to be 70% of the retail price of the wine.
Volume Limit
Limits per Winery
- Month: 10 cases per person
Reporting
Reporting Requirements
- Sales Tax: monthly
- Excise Tax:Monthly by the 20th*
- Direct Shipment: Quarterly by the 20th
- Record Retention:at least 4 years
* The excise tax filing schedule is changed to monthly, effective for tax periods beginning on or after 4/1/21
Product Requirements
Brand Label Registration
Effective March 12, 2021, brand registration is not required for DTC products.
Additional Information
On March 12, 2021, the Governor signed HB 415 – effective immediately, the new law provides for the explicit authorization of the use of fulfillment houses for DTC, removal of the requirement for brand registration for DTC products, and a simplification of the application process.
Kentucky’s law to allow for the direct-to-consumer (DTC) shipping of wine, beer and spirits by producers became effective on July 15, 2020. Upon approval of the regulations on Dec. 14, 2020, ABC approved applicants may remit the $100 annual fee and receive a license electronically.
- Registration with the Kentucky Secretary of State’s office is not a requirement for wholly out-of-state applicants for direct shipper licenses.
- Register with the Department of Revenue to collect and remit sales tax. Note that there is no minimum threshold for Kentucky’s Corporate Income tax or the Limited Liability Entity Tax (LLET). If a company has any amount of sales, property, or payroll in the state of Kentucky, then that company may owe Kentucky’s Corporation Income and LLET.
- After receiving a direct shipper license from ABC, direct shippers must also contact the Kentucky Department of Revenue, Excise Tax Section to set up a direct shipper alcohol revenue account for remittance of excise and wholesale sales tax. (Since Kentucky currently has an 10% “wholesale tax” on wines sold through the three-tier system, DTC shippers will collect and pay a wholesale sales tax which is to be calculated based on 70% of the retail price.)
- A copy of the quarterly direct shipment report must be submitted to the Kentucky ABC via email or U.S. mail.
The direct shipper licensee shall notify the consumer placing the order that the shipment shall not be left unless the recipient of the shipment provides a valid identification document at the time verifying that the recipient is at least twenty-one (21) years of age. All alcoholic beverage containers shipped to the consumer shall be conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”.
Kentucky Improves DTC Law
March 19, 2021The Kentucky General Assembly has passed, and the Governor has signed, HB 415. The new law was enacted in order to correct flaws in the original DTC law, and to undo various effects of regulations that had been adopted to implement the original law. Of primary consequence is the explicit authorization of the use of … Read More ⟶
CONTACT INFORMATION
Kentucky Department of Alcoholic Beverage Control
500 Mero Street, 2NE33
Frankfort, KY 40601
Phone: (502) 564-4850
Fax: (502) 564-1442
500 Mero Street, 2NE33
Frankfort, KY 40601
Phone: (502) 564-4850
Fax: (502) 564-1442
Kentucky Department of Revenue
Excise Tax Section
Station 62
PO Box 1303
Frankfort, KY 40602-1303
Phone: (502) 564-6823
Excise Tax Section
Station 62
PO Box 1303
Frankfort, KY 40602-1303
Phone: (502) 564-6823
