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Wine Equalisation Tax (WET) and BAS

Please Note: In March 2018 QuickBooks will start rolling out a new GST experience. This will happen gradually over a period of time. If you can see the View reports menu when you are on the GST centre main page, you are in the classic experience, and if you can see Run Reports menu, you are on the updated experience.

What is Wine Equalisation Tax (WET)?

If you make wine, import wine into Australia or sell it by wholesale, you'll generally have to account for wine equalisation tax (WET).

WET is a tax of 29% of the wholesale value of wine. It is generally only payable if you are registered or required to be registered for GST.

It's designed to be paid on the last wholesale sale of wine, which is usually between the wholesaler and retailer. But it may apply in other circumstances – such as cellar door sales or tastings – where there hasn't been a wholesale sale. WET is also payable on imports of wine (whether or not you are registered for GST).

QuickBooks does NOT support WET calculation natively at this time, and therefore amounts owed or to be refunded have to be calculated via another method.

For more information about Wine Equalisation Tax, please consult a tax professional and explore the ATO website links below:

https://www.ato.gov.au/Business/Wine-equalisation-tax/​https://www.ato.gov.au/business/business-activity-statements-(bas)/wine-equalisation-tax-(wet)/​https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Instructions/WET---how-to-complete-your-activity-statement-labels/

WET in Classic GST Centre

When WET is enabled in GST Settings, your BAS form will include a Wine Equalisation Tax line under Amounts you owe the tax office, and a Wine Equalisation Tax refundable line under Amounts the tax office owes you.

Including WET amounts on your BAS is done by recording adjustments on the required line. Adjustment transactions recorded on line 1C or 1D will increase or decrease the balance transferred to BAS suspense upon lodgement.

Any adjustments created will also be listed in the related section of the GST Detail report for that period. Adjustment transactions cannot be changed, only deleted.

To include Wine Equalisation tax amounts owed on your BAS, record an adjustment on line 1C by clicking the blue Record link on the far right. Include the amount to pay under Adjustment amount, select the Adjustment account, check the Adjustment date and add any memo details as required. Once you Save the adjustment, the amount you owe will then display on your BAS.

To include Wine Equalisation Tax refundable amounts, repeat the same process as above to record your adjustment on line 1D.

WET in Updated GST Centre

When WET is enabled in GST settings, QuickBooks will create a WET liabilities payable account, and include LCT inside your BAS filing flow.

To include an WET amount to be paid expected by the ATO, input the amount under Wine Equalisation Tax amount during the Other taxes filing stage of your BAS.

Tick the I need to include a refund amount box if you need to report a refund.

When your activity statement is lodged, QuickBooks will automatically write a journal entry against the WET Liabilities payable account and the ATO Clearing account.

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