There are 2 steps to calculate WET for wholesale sales:
- Apply the 29% WET rate to the sale price of the wine (excluding GST).
- Calculate the GST on the WET-inclusive price.
If you sell wine by wholesale for a price that includes WET you must show the amount of WET on the invoice given to the buyer. For more information, see:
- Invoices with a combined wine equalisation tax-goods and services (WEG) label
- GST – issuing tax invoices.
Example: how to work out the wholesale price
Alison has a winemaking business. She sells grape wine to a bottle shop for $120 a dozen bottles before tax.
Alison works out the total wholesale selling price as follows:
|
1 dozen wine bottles |
$120.00 |
|
Plus WET at 29% |
$34.80 |
|
Sub-total |
$154.80 |
|
Plus GST at 10% |
$15.48 |
|
Total wholesale selling price |
$170.28 |
End of example
Some wine sellers use commission agents to facilitate their wine sales. Where the agent deducts a fee from the proceeds of sale, this fee doesn't reduce the selling price of the wine.