The first step in expanding any DtC business in Pennsylvania is becoming compliant with the many rules and regulations required there. Below is a list of what to watch out for.

• Volume Limits

  Wineries are limited to shipping no more than 36 cases per individual per calendar year.

• Shipping Restrictions

  All packages containing wine must be clearly labeled, “CONTAINS ALCOHOL: SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR DELIVERY.”

• Customer Information

  Wineries should collect data on each sale made, including purchaser and recipient information and the contents of each package shipped. These data should be retained in case of audit, and must be regularly reported to the state.

• Tax Rates

  Excise Tax: $2.50 per gallon on all wine
  
  Sales Tax: 6% + local rates for sales made to the Philadelphia or Alleghany tax districts. The Johnstown Flood Tax does not apply to DtC sales

 

Age Verification

Pennsylvania requires, as a condition of holding a DtC license in the state, that a winery verify the age of the purchaser of a DtC wine order at the time of the order. However, the PLCB has delayed enforcement of this rule until December 31, 2018, so the state can determine the exact methods that a winery would need to follow when conducting age verifications.

The second step in expanding your business is staying compliant. Ensure you are able to continue shipping DtC in Pennsylvania by following the guidelines below.

• Tax Reports

  Excise Tax: Direct Wine Shipper Tax Return, due quarterly
  
  Sales Tax: Pennsylvania SUT Return

• Shipping Reports

  Order-by-order data, including purchaser, recipient, and package contents information must be reported quarterly. The PLCB requires that two separate reports be filed: A state-wide report on total amounts shipped, and a zip code-specific report on wine brands sold in that locality.

As the tenth-largest driver of sales among the 45 states that permit DtC wine sales and one of the fastest-growing markets in the country, Pennsylvania is prime real estate for wine sellers who are able to follow the regulations effectively.

• License Required

  All wineries making DtC sales to Pennsylvania residents must first receive a Direct Wine Shipper License. The license costs $250 and must be renewed annually.

• Product Limits

  Wineries are limited to selling DtC only wines that they produce.

Learn how Sovos ShipCompliant can support your expanding business by helping you adhere to state DtC compliance requirements automatically.