Wine Equalization Tax
If you make wine, import wine into Australia or sell it by wholesale, you’ll generally have to account for wine equalization tax (WET).
WET is a tax of 29% of the wholesale value of wine. It is 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 frequently between the wholesaler and retailer. But it might apply in other situation – 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).
If you’re a wholesaler or producer of wine and you’re registered (or required to be registered) for GST, you need to register for WET.
Your business activity statement (BAS) will then have labels for you to report WET payable and any WET credits for each tax period.
If you’re a wine retailer (such as a cafe or restaurant) you don’t need to register for WET except you make wholesale sales or bottle your own wine.
For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au
