April 10, 2017 * Peter Ferrari at 5:26 pm


SapphireOne supports Wine Equalisation Tax (WET) for Wine Distributors

WET tax SapphireOne

Wine Equalisation Tax or wine tax is a single stage tax applying (in most cases) to dealings in wine at the wholesale level. In almost all dealings to which it applies, the GST will also apply _ Federal Register of Legislation

SapphireOne created a workflow for the collection of Wine Equilisation Tax. This is now fully automated. However, allowance has been made at the various steps in the collection of this tax. Users have the ability to vary it by overriding the automatically collected amounts. However, if invoices for the wholesale of the wine does not include any additional costs, user alterations will not be necessary.

SapphireOne created a workflow for the collection of Wine Equilisation Tax. This is now fully automated. However, allowance has been made at the various steps in the collection of this tax. Users have the ability to vary it by overriding the automatically collected amounts. However, if invoices for the wholesale of the wine does not include any additional costs, user alterations will not be necessary.

The set up procedure commences with the selection of a checkbox in Sapphire’s master defaults in utilities mode in Sapphire >Utilities > Controls > Master Defaults >inventory page.

This causes the system to display additional data entry fields or checkboxes required for the collection of WET.

Changes to WET

From 1 October 2017 the test for whether producers are associated for the purposes of the rebate cap is applied at any time during the financial year.

From 1 July 2018:

  • the producer rebate cap for each financial year is $350,000 (reduced from $500,000)
  • tightened eligibility criteria for the producer rebate apply to all wines
  • there are reduced circumstances where you can claim a WET credit
  • you must include new information when buying wine under quote.

Some of these changes also applied from 1 January 2018 for 2018 vintage wines.

Wine Equalisation tax setup procedure

Wine Equalisation Tax (WET) Setup procedure:

1. A new general ledger account must be set up to hold the collected WET.

General Ledger Account Set up for Wine Equalisation Tax

2. Then go to company enquiry and tell the system which account is to be used for the collection of WET. It is in the controls page, default tab. Please enter the General Ledger Account number in WET tax account field that you created at step 1.

Wine Equalisation Tax account set up for company

3. Inventory items: A data entry field is also now displayed for the entry of the percentage of the WET in all inventory items in the controls page. New inventory items will have to be set up and the current 29% WET entered as a percentage.

inventory item Wine Equalisation Tax set up

4. All new transactions will now have a WET data entry field, which will automatically calculate the WET based on the line rates as entered in transactions. This may be altered by the user if necessary, but the basis of the calculation will be as follows: line amounts plus WET, then GST of 10% will be added.

Example: GST on WET
Quantity = 1
Wine rate = $100.00
WET (29%) = $29.00
WET inclusive price = $129.00
GST 10% = $12.90
Total Price = $141.90

GST applied on Wine Equalisation Tax

Invoice Printing:

With the standard Sapphire Invoices, the information is displayed such as tax code, tax rate, tax total, total amount. Sapphire and SapphireOne Reports may also be created, that will also display additional details including the actual WET total on each and every invoice and invoice line if required.

Two sample invoices are displayed here with the WET added into the custom invoice as an example.

Custom Invoice  1 :

Client invoice printing - WET tax Australia

Custom Invoice  2 :

Client invoice printing - WET tax Australia

5. Business Activity Statement (BAS)– The 1C data entry field for Wine Equilisation Tax (WET) will consolidate all of the amounts that have been added to the General ledger account as selected in step 2

Business activity statement calculation for Wine Equalisation Tax

Discover how SapphireOne ERP, CRM and Business Accounting software suite can help your Wine business by requesting a live demo.

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