Using Wine Equalization Tax (WET)

The wine equalization tax (WET) is a value-based tax applied to wine consumed in Australia. It applies to wholesale sales, untaxed retail sales and applications to own use. For more information about WET, visit the Australian Taxation Office web site.

To apply WET to your transactions in NetSuite, use a tax group that combines WET and GST. For guidance on creating tax groups, see Creating a Tax Group (All Countries Except US and Canada).

  1. Create a tax group for Australia that has the following information:

    Tax Code

    Rate

    Basis

    Type

    WET

    29%

    100

    WET

    TS

    10%

    129

    GST

    In this example, the tax group is named WETGST, and the TS tax code is used for the GST. To calculate the correct tax amounts, the basis for TS must be set to 129. The total rate becomes 41.9%.

    • WET is applied at 29% of the value of the wine at the last wholesale sale before adding GST.

    • GST is applied after WET has been added to the price of the wine.

    Sample of WETGST tax group

    To make this tax group available for selection on transactions, make sure that on the Set Up Taxes page for Australia, the Tax Code Lists Include field shows Tax Groups and Tax Codes.

  2. When you sell or import wine for consumption in Australia, select this tax group in the Tax Code column of the transaction.

    The following example shows the tax amounts for each tax type:

    Example of WETGST tax amounts
  3. To see the accounts to which the amounts are posted, place your cursor over Actions, and click GL Impact.

    Example

    Account

    Amount (Debit)

    Amount (Credit)

    Accounts Receivable

    1,419

     

    GST Collected

     

    129

    WET Collected

     

    290

  4. To display the WET and GST amounts on the printed invoice, make sure that on the Set Up Taxes page for Australia, the Print Tax Code Summary on Sales Forms box is checked.

  5. On your Business Activity Statement setup, make sure that the WET tax code is included in the Wine Equalisation Tax (1C) box.

Additional Information

Related Topics

General Notices