Wine Equalisation Tax
Wine Equalisation Tax (WET) is a tax on wine consumed within Australia and is levied at 29%. The tax is paid on the value of the wine at the last wholesale sale, or an equivalent value when there is no wholesale sale. WET affects wine manufacturers, wholesalers, and importers. These wholesalers must report WET amounts payable to the ATO and WET credit amounts on your Business Activity Statements (BAS). Retailers do not have a WET liability unless they make their own wholesale wine.
Generally, WET is included in the price that retailers such as bottle shops and restaurants pay when purchasing wine. The retailer is not entitled to claim back the cost of the WET, as the WET is built into the price that the retailer pays and then passed on to the consumer.
|IMPORTANT DISCLAIMER: This article is published as a guide to clients and for their private information. This article does not constitute advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.|