How does the ministry calculate sales and account for spillage during an audit?
The auditor will multiply your liquor purchases by your average mark-up prices (as determined from the audit) to determine the amount of PST expected from your sales. The auditor will take into account spillage and inventory losses, as evidenced in your records; however, you pay PST on your cost of liquor given away free of charge (i.e. complimentary drinks). For more information on liquor audits, please see the Liquor Audits – What to Expect information sheet.
