Wine equalisation tax (WET) is a tax on wine consumed in Australia. It is based on the value of the wine and generally applies to the last wholesale sale (usually between the wholesaler and the retailer) although it may apply in other circumstances.
Wine equalisation tax (WET) is a tax based on the value of wine. You calculate the amount of WET due and you report and pay that amount through your BAS. If you’re not registered or required to be registered for GST you only have to pay WET on imported wine.
WET applies to a number of alcoholic beverages that contain more than 1.15% by volume of ethyl alcohol. For the purpose of WET, all these products are referred to as ‘wine’. If you make any of these wines, import any for consumption in Australia or sell any wholesale, you normally have to pay WET. Alcoholic beverages not subject to WET are subject to excise duty (if made in Australia) or customs duty (if imported).
If you have determined that you will be required to pay WET or claim a WET credit then you will need to be registered for GST and have a WET business account added to your registration details with us.
Generally, when you sell wine you will need to include the WET in the price. However there are some instances where you don’t need to charge the WET, these include where the purchaser has quoted that the goods are to be exported or the sale of wine is a retail sale and WET has already been paid. For imported wine, eligible businesses can defer the WET on importation by providing a quotation to Customs.
WET is calculated on the taxable value of sales, imports and applications to own use. The wine producer rebate entitles wine producers to a rebate of up to $500,000 each financial year.
You report and pay WET amounts to us and claim adjustments, credits or refunds in your activity statement or an annual GST return. You can lodge and pay your activity statement electronically, by mail or in person.
You may need to amend a mistake on an earlier activity statement or adjust a previous amount of WET paid. You may be eligible to claim a credit or refund.
You need to issue tax invoices to your customers and keep all records that will substantiate the amounts paid and/or claimed on your activity statement. If you are a wine producer, you need to keep records to substantiate that you are the producer of the wine you make.
You need to contact us to cancel your WET business account (and possibly your GST and ABN registration) if your business has been closed down, sold or your business activities change.