EDM10-1-6 Completing an Excise Duty Return – Wine Licensee

From: Canada Revenue Agency

May 2022

This version replaces the one dated October 2006. 

This memorandum provides line-by-line instructions on how to complete Form B265, Excise Duty Return – Wine Licensee, which must be filed by wine licensees under the Excise Act, 2001.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act, 2001. The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the Act or relevant regulation, or contact any Canada Revenue Agency (CRA) regional excise office for additional information. These offices are listed at Contact Information – Excise Duties, Excise Taxes, Fuel Charge and Air Travellers Security Charge.

General

As a wine licensee, you must file Form B265, Excise Duty Return – Wine Licensee, and, if applicable, pay excise duty for each reporting period. For information on requirements related to producers and packagers of wine, refer to Excise Duty Memorandum EDM4-1-1, Producers and Packagers of Wine.

If you qualify as a small producer of wine, you are exempt from paying excise duty. However, if you packaged wine that you did not produce and you did not immediately enter that wine into an excise warehouse, excise duty is payable on that wine and you will need to calculate the amounts of excise duty. This information must be entered on page 1 of Form B265. For information on how to determine if you are a small producer of wine, refer to Excise Duty Memorandum EDM4-1-2, Small Producers of Wine.

When completing Form B265, you must include only the information that applies to the reporting period for which you are filing and complete only the lines of the return that apply to you. Dollar amounts should be rounded to the nearest cent.

Filing your return

You can file your return either:

  • electronically using the “File a return” function in My Business Account
  • by mail at:

    Canada Revenue Agency
    Prince Edward Island Tax Centre
    275 Pope Road
    Summerside PE  C1N 6E7

Instructions for page 1

Identification box

Enter your complete legal name and mailing address.

Section 1 – Account number

Enter your 9-digit business number (BN) and 4-digit program account number.

Section 2 – Period covered (YYYY-MM-DD)

Enter the start and end dates of the reporting period for which this return is being filed.

Section 3 – Due date (YYYY-MM-DD)

Enter the due date for this return. The due date is the last day of the month following the reporting period covered in section 2. When a due date falls on a Saturday, a Sunday or a public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day.

Line 4 – Wine containing more than 7%

In the “Quantity (litres)” column, enter the total litres of wine containing more than 7% absolute ethyl alcohol by volume that you packaged and on which duty is payable.

To calculate the amount of excise duty payable, multiply the quantity of wine you entered by the effective rate of excise duty for wine containing more than 7% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 5 – Wine containing more than 1.2%, but not more than 7%

In the “Quantity (litres)” column, enter the total litres of wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume that you packaged and on which duty is payable.

To calculate the amount of excise duty payable, multiply the quantity of wine you entered by the effective rate of excise duty for wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 6 – Wine containing not more than 1.2%

In the “Quantity (litres)” column, enter the total litres of wine containing not more than 1.2 % absolute ethyl alcohol by volume that you packaged and on which duty is payable.

To calculate the amount of excise duty payable, multiply the quantity of wine you entered by the effective rate of excise duty for wine containing not more than 1.2% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 7 – Total (4 to 6)

Add the amounts from lines 4, 5 and 6 of the “Duty payable” column and enter the total amount.

Line 8 – Refunds (B256 attached)

Enter the total refund claimed on line 8 only if you are attaching Form B256, Excise Act, 2001 - Application for Refund.

You may reduce the current reporting period’s excise duty payable by the amount of the refund you claim on Form B256 provided that form is attached to this return.

If you have filed a separate refund claim, do not record the amount of that claim on this return.

If you expect a refund from a previous reporting period, but have not yet received it, do not include that information on this return.

Line 9 – Net payable (7 minus 8)

Enter the “Net payable” amount by subtracting the amount on line 8 from the amount on line 7. If this amount is negative, place a minus sign to the left of the amount.

Line 10 – Amount due

Enter the amount from line 9. If this amount is negative, place a minus sign to the left of the amount.

Line 11 – Payment / Credit due

If the amount from line 10 is a negative amount (that is, a credit is due), enter this amount, including the minus sign to the left of the amount.

If the amount from line 10 is a positive amount (that is, a payment is due) and you have not already paid it, enter this amount and make your payment online, by mail or in person at a financial institution.

If the amount from line 10 is a positive amount and you have already paid it, enter “0”.

Certification

Enter the name, title and telephone number of an authorized representative. The authorized representative must sign and date the return.

Instructions for page 2

Where necessary, enter in the proper section on this page any changes related to your licence:

  • name of licensee
  • mailing address
  • address for books and records
  • contact name and title
  • telephone number
  • language of future correspondence
  • the effective date of the above changes
  • the date when the business closed and the reason for closure

Additional material required

Check any of the applicable boxes if you require additional:

  • remittance vouchers
  • pre-addressed return envelopes
  • remittance envelopes

Instructions for page 3

Bulk inventories are reported based on the possession of the product, regardless of who is responsible. There may be situations where you are responsible for bulk wine but do not have it in your possession, or vice versa. Your books and records should reflect these situations for verification during audit and compliance reviews.

Identification box

Enter your complete legal name.

Section 1 – Account number

Enter your 9-digit BN and 4-digit program account number.

Section 2 – Period covered (YYYY-MM-DD)

Enter the start and end dates of the reporting period for which this return is being filed.

Inventory table

Bulk wine inventory is reported in litres for each of the following:

  • wine containing more than 7% absolute ethyl alcohol by volume
  • wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume
  • wine containing not more than 1.2% absolute ethyl alcohol by volume

Line A – Opening inventory

For each column, enter the quantity of wine for “Opening inventory”. The opening inventories of this return must equal the closing inventories indicated on line E of the previous return.

Additions to bulk wine inventory

Wine produced

For each column, enter the total quantity of bulk wine produced. For additional information on the meaning of produce, refer to Excise Duty Memorandum EDM4-1-1.

Wine received from wine licensees and licensed users

For each column, enter the total quantity of bulk wine received from wine licensees and licensed users.

Imported wine

For each column, enter the total quantity of bulk wine that you have imported.

Packaged wine returned to bulk wine inventory

For each column, enter the total quantity of packaged wine returned to bulk inventory.

Line B – Total additions

For each column, add the quantities of bulk wine added to your inventory (in other words, all additions to bulk wine inventory) and enter the total on line B.

Reductions to bulk wine inventory

Removed for delivery to wine licensees and licensed users

For each column, enter the total quantity of bulk wine removed for delivery to wine licensees and licensed users.

Exported wine

For each column, enter the total quantity of bulk wine that you have exported.

Removed to packaging activities

Bulk wine removed to packaging activities is separated into the following categories:

  • Packaged
  • Packaged – exempt 100% Canadian (that is, wine produced in Canada and composed wholly of Canadian-grown agricultural or plant products)*
  • Packaged in marked special containers

For each column and applicable line, enter the total quantity of bulk wine removed to packaging activities.

* Budget 2022 proposed to repeal the excise duty exemption for 100% Canadian wine, effective June 30, 2022. Accordingly, quantities of bulk 100% Canadian wine removed to packaging activities on or after that date would be entered into either the “Packaged” or “Packaged in marked special containers” line.

Wine removed for other purposes

  • Non-duty-paid (for example, taken for analysis or destroyed in an approved manner)
  • Duty-paid (for example, taken for use or unaccounted losses)
  • For each column and applicable line, enter the total quantities of bulk wine removed for other purposes and specify the purpose for removal.

Line C – Total reductions

For each column, add the quantities of bulk wine removed from your inventory (in other words, all reductions to bulk wine inventory) and enter the total on line C.

Line D – Inventory adjustment (+ or −)

For each column, enter the necessary inventory adjustment. Adjustments may be necessary to balance the physical inventory with the book inventory. The closing inventory in your book must match the physical inventory for the reporting period.

Line E – Closing inventory (A + B) − C ± D

For each column, add the quantity on line A and the total on line B, subtract the total on line C, and add or subtract the inventory adjustment on line D. This closing inventory is the opening inventory for the following reporting period.

Small producer threshold

If you qualify as a small producer of wine for this reporting period, indicate Yes. If you do not qualify as a small producer of wine for this reporting period, indicate No.

Further information

For all technical publications related to the Excise Act, 2001 and its regulations, go to Excise duties technical information under the Excise Act, 2001.

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