SapphireOne’s Industry Support – Focus on Wine Equalisation Tax
Organisations across various industries require robust and adaptable solutions to meet their unique needs. SapphireOne stands out as a versatile ERP, CRM, and Accounting Software that caters to a wide range of industries, including the wine industry, which has specific requirements such as the Wine Equalisation Tax (WET).
Understanding Wine Equalisation Tax (WET)
The Wine Equalisation Tax (WET) is a complex tax applied to wine sold or imported into Australia. It is calculated based on the wholesale value of the wine, which can vary significantly from the invoiced amount due to additional costs added by distributors.
This complexity necessitates a meticulous approach to ensure accurate tax calculations and compliance. WET applies to beverages containing more than 1.15% by volume of ethyl alcohol, including grape wine (sparkling and some fortified), grape wine products (such as marsala), fruit wines, vegetable wines, cider, perry (with some exceptions), mead, and sake. For the purposes of WET, these products are collectively referred to as wine. For more detailed information, refer to the Wine Equalisation Tax Ruling (WETR 2009/1).
When wine is fortified, either WET or excise applies, depending on the type of wine and its alcoholic strength. For fortified wines such as grape wine, grape wine products, and fruit or vegetable wines, the end product must not contain more than 22% alcohol by volume to remain subject to WET. For more information, see Excise – wine fortification. WET does not apply to beverages such as beer, spirits, liqueurs, pre-mixed spirits, some flavoured ciders, and ready-to-drink designer drinks. If these beverages have an alcohol content of more than 1.15%, they are subject either to excise duty (if manufactured in Australia) or customs duty (if imported).
SapphireOne provides a comprehensive framework to manage WET tax effectively. Here’s how:
Manual Calculation for Accuracy – Users are required to manually calculate and enter the WET tax for each transaction. This ensures that the tax is applied accurately based on the actual wholesale price, which may differ from the invoiced amount.
Consolidation in BAS – When creating a Business Activity Statement (BAS), SapphireOne consolidates all transactions with WET tax entries into the 1C section of the BAS statement. This ensures that your organisations BAS tax reporting is accurate and compliant.
Customisable General Ledger Accounts – SapphireOne allows you to set up specific General Ledger accounts to manage WET tax collections. This helps in maintaining clear and organised financial records.
Control Accounts for Seamless Processing – By specifying a Control Account in the Company Inquiry section, SapphireOne ensures that all WET tax entries are processed correctly, streamlining your financial operations.
Step-by-Step Guide to Setting Up WET Tax in SapphireOne
To assist users in setting up WET tax, SapphireOne provides a detailed procedure:
In conclusion, SapphireOne’s robust support for diverse industries, including the wine industry, ensures that your organisation can manage complex tax requirements like WET with ease. By providing accurate tax calculations, seamless BAS integration, and customisable financial management and reporting tools, SapphireOne empowers your organisation to stay compliant and efficient.
