Microdistillery Tax Return Instructions

You must first complete the Microdistillery Excise Tax Return template to calculate the tax and then enter this information into e-Services.

Template Instructions

The Excel template is divided into nine worksheets. Follow these instructions for each worksheet.

Microdistillery Totals

Enter the filing period, business name, and related information. Also enter the:

• Beginning inventory (should equal previous month’s ending inventory)
• Ending inventory
• Credits and other adjustments (go to Microdistillery Credit and Annual Production Report)

Bottling 

Enter the number of liters for each type of distilled spirits, the number of liters of low-alcohol dairy cocktails, and the total amount of bottles (do not include bottles containing less than 200ml), and the number of miniature bottles.

Tax Paid Returns 

Enter returns on which you paid tax and issued a credit memo to the customer.

Untaxed Returns

Enter customer returns on which you have not paid tax and any tax-exempt sales you returned to inventory during the period.

Other Additions to Inventory

Enter any miscellaneous adjustments/corrections that increased your inventory.

Tax-Exempt Sales

Enter your tax-exempt:

• Sales to common carriers engaged in interstate transportation of passengers
• Sales to qualified approved military clubs
• Sales or transfers between Minnesota wholesalers
• Sales to a federal agency that the state of Minnesota is prohibited from taxing
• Sales to the established governing body of an Indian tribe

Breakage

Enter all authorized breakage and supervised destruction.

Other Reductions to Inventory

Enter any miscellaneous adjustments, corrections, or transactions that decreased your inventory. Provide a description of the subtraction listed.

Production Report

Microdistilleries are required to report the number of proof gallons they produce each calendar year. This information is due with your December return, which is due January 18. For more information, go to Microdistillery Credit and Annual Production Report.