Invoicing WET to Wine Retailers.

Stephanie_2017
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Stephanie_2017
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Invoicing WET to Wine Retailers.

Hi all,

I am wondering how to record wine invoice from our supplier in AR. My client is Restaurant. The invoice's tax summary shows:

WET: $214.54; WGST $95.44.

Subtotal of invoice is $739.86

Tax is $309.98

Total is $1049.84

My accountant advised to set up tax code is GW. When I clicked tax information it showed up like that:

GST 10% tax basic is $0, Taxable amount is $0 and Tax is $0

WEG 12.9%, tax basic is $739.85, taxable amount is $739.85, tax is $95.44

WET 29%, tax basic is $$739.85, taxable amount is $739.85, tax is $214.56.

Could anyone please confirm that is correct and why GST is $0.I just want to understand this invoice properly. Any explaination would be appreciated. 

Thank you so much in advance.

Stephanie

 

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Stephanie_2017
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Stephanie_2017
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How to record wine invoice with WET and WGST tax code

Hi all,

I am wondering how to record wine invoice from our supplier in AR. My client is Restaurant. The invoice's tax summary shows:

WET: $214.54; WGST $95.44.

Subtotal of invoice is $739.86

Tax is $309.98

Total is $1049.84

My accountant advised to set up tax code is GW. When I clicked tax information it showed up like that:

GST 10% tax basic is $0, Taxable amount is $0 and Tax is $0

WEG 12.9%, tax basic is $739.85, taxable amount is $739.85, tax is $95.44

WET 29%, tax basic is $$739.85, taxable amount is $739.85, tax is $214.56.

Could anyone please confirm that is correct and why GST is $0.I just want to understand this invoice properly. Any explaination would be appreciated. 

Thank you so much in advance.

Stephanie

 

Ultimate Partner ronatbas
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ronatbas
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Re: How to record wine invoice with WET and WGST tax code

@Stephanie_2017

 

You can record WET and and or the combined taxes but, as the last entity in the wholsale chain you are unable to claim it back from the ATO. As a restuarant you are in the same position as other liquor retailes and are expected to pass the on to the end user as partof your price.

https://www.ato.gov.au/Business/Wine-equalisation-tax/Products-WET-applies-to/

 

Wine equalisation tax

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 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).

Ron B
BAS Group
03 95588477

info@basgroup.com.au
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AnnaH
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AnnaH
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Re: Invoicing WET to Wine Retailers.

Hi Stephanie,

I was searching for WET information and came across your post. I work for a winery.

All your figures are correct. WEG is the GST Code used when dealing with WET.

When you are dealing with WET your GST  needs to calculate at 12.9% not 10% . (GST is still 10% but it is calculated on the Net amount including the WET.) $739.86 + $214.54 = $954.40 x 10% = $95.44

$739.86 x 12.9% = $95.44

The tax total you have of $309.98 is the total of the WET $214.54 and the WGST $95.44 this is your code GW. Unless there is some reason for you to keep track of the WET I wouldn't bother with setting up the GW code.

You won't be able to claim the WET, so you only need to record the GST $95.44. (The WEG or your supplier has used WGST) Again I would record it as the GST code and not bother with the WEG label. If you use the WEG label make sure it flows through to your GST label for BAS time.

Some stuff that may be helpful.

Only producers (those that make the wine, grow the grapes) can claim what is called the Wine Producer Rebate, (claim the WET back, but it has a limit)  so it is different to GST in that respect, beause for your client they are not the final customer but they can't claim the WET.

All your wine suppliers would have WET included in their final price to you, but they probably don't show it separately on their invoices.

There is a term LUC (Landed Unit Cost) which is the sale price including WET, you may see that on price lists. Everyone works on LUC in the wine industry, so we don't very often talk about the price excluding the WET.

I think this is because only the producers can claim the WET so our customers who are restaurants can't claim it, our customers who buy online or at cellar door can't claim it. And our true wholesalers provide us with what is called a Quote and we sell to them WET free. 

Hope that is helpful.

 

Ultimate Partner ronatbas
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Re: Invoicing WET to Wine Retailers.

@AnnaH

 

It is so good to someone with some hands experience with WET/WEG on the forum. Please make sure that you drop in every so often and feel free to continue to share your experiences with us.

Ron B
BAS Group
03 95588477

info@basgroup.com.au
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