Wine Equalisation Tax is a tax on the last wholesale sale (i.e. a sale to a reseller) of wine in Australia. (Wine includes grape wine, grape wine products, other fruit or vegetable wines, cider, Perry, mead, and sake.
Wine equalisation tax is imposed at the rate of 29% on the wholesale selling price of wine (excluding GST). If not sold by wholesale, alternative values are used to calculate wine equalisation tax.
Worksheets are provided on pages 78 to 86 of the Business Activity Statement Instructions.
Wine Equalisation Tax Payable is reported at box 1C and Wine Equalisation Tax Refundable is reported at box 1D on the Business Activity Statement. Please note that this has nothing to do with the GST Calculation Sheet section.
Wine Equalisation Tax and Cashflow Manager
Establish a GST column in your receipts section called ‘WET Payable’. Record the Wine Equalisation Tax portion of any transaction in this column.
You will still need to do some manual calculations; the program will not be able to automatically give you the figures for WET. This is so you can keep your bookkeeping accurate.
In the example above, the figure to go in "Total Receipt" is $156.00 (total cost of wine case).
Then in "Wine Sales (GST)" I put $120.94. This is the wholesale price plus the GST component OF THE WHOLESALE PRICE (109.94 + 11.00).
The final column is "WET Payable (GST)" and entered here is the WET - 29% of the wholesale price plus the GST on the WET (31.88 + 3.19).
The reason for this entry method is because GST is calculated on the WET inclusive price, hence, wholesale + 29%. The GST portions of each have been included in the two allocation columns, to give a total GST of 14.18 in the grey column.
An example below is of a printout of the trial balance report, showing figures for GST, wholesale sale price, and WET amounts.
If there is a circumstance where a payment gives ground for a Wine Equalisation Tax Refund, you may wish to establish a ‘WET Refund’ column in your Payments section and record any such transactions in this column.
Do not include amounts received from the Tax Office in either of the above columns, as these amounts do not get recorded on the Business Activity Statement. Generally payments to the Tax Office would be recorded in the Sundry Non-GST Payments column, and receipts from the Tax Office would be recorded in the Sundry Non-GST Receipts column.