Wine Equalisation Tax (WET) and BAS

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/

Recording WET in QuickBooks

When WET is enabled in GST settings, QuickBooks will include WET inside your BAS filing flow. Once your BAS has been marked as lodged, a WET Liabilities account will be created in the Chart of Accounts.

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.