Virginia Requires Alcohol Wholesalers to File Excise Taxes Online

Virginia has changed how wholesalers of wine, beer and wine coolers must handle excise taxes, after Gov. Glenn Youngkin signed a bill that requires electronic filing and payment and sets new penalties for late compliance.

The law, approved as S.B. 788 and enacted on April 13, updates the Code of Virginia’s alcoholic beverage control provisions. It applies to wholesale wine licensees and requires them to submit tax reports and payments electronically by the 15th of each month. The measure also creates a graduated penalty system for failures to comply, with fines ranging from 5% to 25% of the taxes owed.

The changes take effect July 1, giving distributors and other affected businesses a short window to adjust accounting systems and filing procedures before the new rules become mandatory.

The law covers excise taxes on beer, wine coolers and wine, part of a broader effort by the state to tighten tax administration and move more filings online. For wholesalers, the shift means monthly compliance will now depend not only on paying on time but also on using the state’s electronic filing process.

Businesses that miss the deadline could face penalties that rise with the severity of the violation. The statute does not replace the tax itself; it changes how it must be reported and paid, adding a formal electronic requirement where paper-based or other non-electronic methods may have been used before.

For wineries, beer distributors and other alcohol wholesalers operating in Virginia, the new rule adds another layer of administrative oversight at a time when states are increasingly relying on digital systems to collect revenue and monitor compliance.