Brewery and Liquor Distillery Tours Taxable in South Carolina

May 3rd, 2019

The South Carolina Department of Revenue released two revenue rulings advising that brewery and liquor distillery tours are subject to sales tax.

Sales of beer and liquor are taxable in South Carolina. However, the taxability of beer or liquor samples provided on tours of breweries or distilleries depends on the true object of the tour. When beer or liquor is provided as part of a paid tour, the true object of the tour is the sale of the beer or liquor. As a result, the cost of the paid tour is subject to sales tax. If the brewery or distillery provides a free tour with free samples, the brewery or distillery owes sales tax on the fair market value of each keg of beer or liquor used for the samples.

The revenue rulings also include examples illustrating how tax applies in various tour scenarios.