How GST is handled for liquor manufacturer sales to licensees
As an Alberta small liquor manufacturer, when you sell product to another licensee, including to your own Class A or D licence, you are not selling product directly to that licensee or to yourself. Instead, you are selling your product to AGLC at the invoice price. The invoice price represents the manufacturer’s costs and profit margin. No GST is charged on the invoice price, as AGLC is exempt from paying GST on purchases of supplies and services. For further details, see the attached letter: AGLC GST/HST Exemption.
The subsequent liquor sale on behalf of AGLC (whether to another licensee or your Class A or D licence) is transacted at the AGLC registered wholesale price. The wholesale price is comprised of the invoice price plus recycling fee, excise duty (if applicable), provincial markup, container deposit and GST.
AGLC also requires invoices to include a statement that all payments be made to AGLC and to include AGLC’s GST Registration Number (12407 2513 RT0001).
AGLC receives payments from licensees (and/or your Class A or D) and, in turn, remits to the Canada Revenue Agency (passing through the Government of Alberta) the GST collected on the liquor sold at wholesale. For further details, see the attached letter: AGLC GST – Liquor Sales.
AGLC does not remit GST on the sale of liquor from licensees to consumers. AGLC is NOT involved with GST reporting or remittance of GST on retail liquor sales from a Class A or D license to the public. Please refer to the Canada Revenue Agency for the applicable guidance for your business.
The GST report
The new GST report summarizes the GST that AGLC remitted/will remit to Canada Revenue Agency on the sales that manufacturers reported to AGLC through the Liquor Sales Application (LSA).
The report is available through the LSA and provides the wholesale price breakdown, including GST on reported sales.
How to access the GST Report
- Log into the LSA
- On the top banner, click Reports
- Click GST Report