A manufacturer or other authorized licensee that supplies alcoholic beverages in the state where it is located that wants to make direct shipments to Kentucky consumers must obtain a Direct Shipper's license from the Kentucky Alcoholic Beverage Control (ABC). Then the manufacturer or supplier must contact the Kentucky Department of Revenue (DOR) to set up a revenue account to fulfill its tax reporting obligations. The Direct Shipper contact within the Excise Tax Section is Elizabeth Gonzalez with direct phone number 502-564-9250 and email address Elizabeth.Gonzalez@ky.gov . The Excise Tax Section's phone number is 502-564-6823, Option 3 for alcohol-related inquiries, or submit an email to DOR.WEBResponseExciseTax@ky.gov.
Direct Shippers must file:
- Form 73A550 – Monthly Return of Direct Shippers of Alcohol, for remittance of the excise and wholesale sales tax.
Effective for tax periods 04/2021 forward, complete the tax return and file and remit taxes due by the 20th of each month following the reporting period. Monthly returns are due even if there are no direct shipments that month.
If the wholesale price is available, then use this amount in calculation of the wholesale sales tax. If not available, then calculate by taking seventy percent (70%) of the retail price to apply the wholesale sales tax.
And, depending on alcohol type complete either:
- Form 73A551 – Direct Shippers' Detailed Quarterly Report of Distilled Spirits or Wine
- Form 73A552 – Direct Shippers' Detailed Quarterly Report of Malt Beverages
Each quarter, submit one or both of the detailed reports of direct shipments to Kentucky consumers, depending on alcohol type. These forms are due by the 20th of the month following the end of each quarter. If the Direct Shipper files and reports no sales on each monthly return (Form 73A550) for the quarter, then no quarterly report is due for that reporting period.
The 6% state sales and use tax is also due on direct shipments of alcohol to Kentucky consumers along with applicable local taxes.
Distillers – Effective 01/01/2022 – Report and Remit Excise Tax and Wholesale Sales Tax:
- Form 73A525 – Monthly Report of Distillers, Rectifiers, or Bottlers
Each month, Kentucky distillers must directly report all product sold at retail as authorized under KRS 243.0305(3)(b), (8) and (9). This reporting does not include direct shipments to consumers which they will continue to report on a monthly basis on Form 73A550 with detailed consumer sales data reported quarterly on Form 73A551.