Preparing for Your Annual Inspection

ABC special agents can inspect your business at any time, so it makes good sense to have your documents and records in good order at all times. The Virginia Administrative Code (VAC) requires licensees to comply with the regulations listed below.

Always keep complete and accurate records of all transactions at your place of business for at least two years. Records of alcoholic beverage transactions should be kept separately in an orderly arrangement and must be available for inspection at the request of ABC agents.
(3 VAC 5-70-90.A)

Here is the form that agents use to perform their annual or "spot" inspection. (PDF download file size 70 KB)

All wine, beer and liquor invoices shall be kept for two years. Invoices shall show date of purchase, the type and amount bought and the name and address of the persons from whom you purchased. Daily sales records shall also be kept and show the amount of food and alcoholic beverages sold and prices charged.
(3 VAC 5-70-90.C)

Keep a record of all checks used for purchase of alcoholic beverages and do not throw away canceled checks and related bank statements.
(3 VAC 5-70-9.A)

Mixed beverage licensees must track sales and purchases of all mixed beverages, food and non-alcoholic beverages. Once a year, each mixed beverage licensee is required to submit an annual review report to the Board showing all purchases and sales of alcoholic beverages during the year as well as an accurate inventory. Keep in mind that in determining "gross receipts from the sale of food" you should not include receipts for food for which there was no sale, which includes food given away as part of a promotion or provided for free at a private function. Also, food sales should be reported net of any discounts or coupons.
(3 VAC 5-70-90.D) and (3 VAC 5-70-90.F)

Related Licensee Issues

Ownership Change

Only the individual, partnership, association, or corporation whose name appears on the license may use the privileges of the license. Any change in the status on non-corporate ownership, such as the sale of the business or taking on a new partner, automatically terminates the current license and a new application must be filled. If a corporation holds a license and any changes in the officers, directors, or shareholders owning 10% or more of the stock occurs, the ABC Board must be notified within 30 days. However, publicly owned corporations whose stock is traded on an exchange do not have to report stock transfers.
(3 VAC 5-70-90.G)

Persons to whom a license has been issued should not allow other persons to receive a percentage of the income of the business or have an ownership interest in the business (no "shadow owners or silent partners"). This does not prohibit the payment of franchise fees or the payment of rent based on gross receipts.
(3 VAC 5-50-220)

No license is transferable from one person to another or from one place to another.
(COV 4.1-203)

Each license must be posted in a location on the premise where it is clearly visible.
(COV 4.1-203)