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Tax-included pricing and requirements for spirits manufacturers
Subsection 65(2) of the Liquor Tax Act, 1996 (the act) states that spirits manufacturers (distillers) that sell spirits from Ontario distillery retail stores must make available to purchasers, by an approved method, information with respect to the amount of taxes included in the price. This page addresses this requirement as well as the approved methods of providing such information.
For the purposes of this page 'spirits' includes 'spirits coolers'.
This page provides general information. It is not exhaustive and does not replace the law found in the Liquor Tax Act, 1996, and related regulations.
Not all spirits sold in Ontario are subject to the spirits taxes
Although the retail price (i.e., purchases at a retail store and not licensed establishments) of a particular spirits is the same whether it is purchased at a Liquor Control Board of Ontario (LCBO) store or one of its agency stores or at a distillery retail store in Ontario, the spirits taxes do not apply to all spirits sold in Ontario.
For example:
Spirits purchased from the LCBO or from a person who purchased from the LCBO are not subject to the spirits tax, nor are spirits purchased at a licensed establishment. Only spirits purchased at an Ontario distillery retail store are subject to the spirits taxes.
Tax-included pricing requirements
Distillers that sell spirits from Ontario distillery retail stores shall also make available to purchasers such information with respect to the amount of the spirits taxes included in the price as the Minister specifies and by a method approved by the Minister.
Information with respect to the amount of taxes included in the price: Spirits taxes contained in invoices
Where invoice is issued by distiller
Distillers that sell spirits from their distillery retail store may provide the amount of the spirits taxes payable on the spirits sold to purchasers on the invoices issued to purchasers.
Where invoice is not issued by distiller
Where an invoice is not provided detailing the amount of spirits taxes payable, the following section outlines the information that distillers that sell spirits from their distillery retail store must provide to customers and the method of providing that information.
Information with respect to the amount of taxes included in the price: Spirits taxes not contained in invoices
Ministry policy
The ministry has approved the following as meeting the requirements of subsection 65(2) of the act in specifying the information with respect to the amount of taxes included in the price that must be made available to purchasers and the method of providing the information.
Distillers that sell spirits from their distillery retail store must post in a prominent location where the spirits is sold, or provide to purchasers, an information sheet specifying:
- the current spirits tax rates (basic, volume and environmental) applicable to spirits and spirits coolers
- information on how the retail price of the spirits is determined under the act, and
- a reference to the ministry's website at ontario.ca/finance for further information.
Information sheet for distillers approved by the ministry: Spirits Tax Information Sheet - Effective July 1, 2017
Request an interpretation
To obtain an interpretation on a specific situation not addressed, please send your request by:
- email: Advisory Services
- mail: Ministry of Finance, Advisory Services, 33 King Street West, 3rd Floor, Oshawa ON L1H 8H5
For more information
Visit ontario.ca/finance or contact the Ministry of Finance at 1‑866‑ONT‑TAXS (1‑866‑668‑8297) or 1‑800‑263‑7776 for teletypewriter (TTY). The Liquor Tax Act, 1996, and Ontario's other public statutes and regulations may be obtained online at ontario.ca/e laws.