Create and Apply Wine Equalisation Tax (WET)

Wine Equalisation Tax (WET) applies to all wholesale sales of wine in Australia but is generally paid only on the last wholesale sale – such as a sale from a winery or distributor to a restaurant or bottle shop.

WET is 29% of the taxable value of 'assessable dealings', such as sales, imports and own use of wine. Learn more about WET and if it applies to your business.

For example, the taxable value of a wholesale sale is the price for which the wine is sold (before WET and GST are applied). The value of WET and GST are compounded. Therefore the WET is applied first to the taxable value. Thereafter, the GST will be applied to new value.

On TradeGecko you can set up a Tax Type to apply the WET tax to your Sales Order Invoices.

First go to the Settings of your Main App and Select Tax Types.

Click on New Tax Type. A popup such as the one below will appear.

Fill in the fields using the image below as a reference.

When filling the fields you must check the box “Has compound tax”. WET is applied to the value of the order before GST. If you do not check this box, the GST will not be applied to your order and your tax value will be incorrect.

Once you have filled in the fields you will be able to see the Effective Rate for this tax type. If the amount is accurate click Create.

To apply the WET Tax to a Sales order, first go to your Sales Order and create a New Sales Order.

Ensure your totals are Tax Exclusive.

Click on the field for Tax to display the list of all your Tax Types. Select WET.

You will be able to see the WET and the GST applied to your Order.

Click on Create and your New Sales Order with WET will be created.

Once you apply a tax type to a Sales Order you can no longer edit the tax type for that order.
Print Friendly Version of this pagePrint Get a PDF version of this webpagePDF
Have more questions? Submit a request
Was this article helpful?
0 out of 0 found this helpful