In certain circumstances you can quote your ABN when you buy wine and the sale is then exempt from wine equalisation tax (WET). This is known as buying wine 'under quote'.
Entitlement to quote
You're only entitled to buy wine under quote if you're registered for GST and you:
- intend to sell the wine by wholesale or indirect marketing sale while the wine is in Australia
- are mainly a wholesaler and intend to sell the wine by any kind of sale in Australia (you're mainly a wholesaler if your wholesale sales in the last 12 months – or expected sales in the next 12 months – will be more than half of all your wine sales)
- intend to use the wine in manufacture or other treatment or processing (for example, in the manufacture of cakes)
- intend to supply the wine GST-free (for example, by exporting it).
If you're buying wine in circumstances other than the above but you believe you should be able to quote, you can contact us about WET for advice.
How to quote
You can quote your ABN on the order form for the wine, or on any other document that the supplier will keep that identifies the particular wine (such as a delivery slip, acknowledgment of receipt or duplicate invoice).
Whatever format you use, you must tell the producer on your quote if you:
- intend to have a taxable dealing with the wine; or
- intend to
- sell the wine GST-free
- sell the wine under quote
- use the wine as an input into manufacture or other treatment or processing.
If your quote indicates your intention to have a taxable dealing with the wine and you subsequently do not, you will have to pay WET on the later dealing.
If you buy wine for a price that included WET and then on-sell the wine, any quote that the purchaser provides you when you sell the wine is ineffective. The sale will not be exempt from WET. You will be liable for WET on the sale, but you can claim a credit for WET you previously paid on the wine.
Note: a quote will only be effective if it is provided at or before the time of the dealing it relates to.
See also:
- Approved quoting forms – for templates with the information you need to include.
Providing a periodic quote
If you regularly buy wine from certain suppliers, you can provide a periodic quote to each supplier to cover your wine purchases for up to a year. Once a periodic quote is in place you don't need to provide the supplier with a quotation every time you buy some wine.
The periodic quote must:
- contain the information required for the quote to be in the approved form
- specify the period it covers (no more than one year)
- be provided to the seller at or before the time of the first dealing to be covered by the quote.
If you have a periodic quote in place you must notify the supplier at or before the time you purchase wine if you:
- make a purchase from the supplier that you are not entitled to quote for
- intend to deal with the wine you purchase from the supplier differently from what you stated in your periodic quote.
If you're importing wine, periodic quoting is not available. You can quote your ABN to the Department of Home Affairs or authorise your customs broker to do this for each importation.
See also:
- Approved quoting forms
- Wholesale sales
- GST-free supplies
- WETR 2009/1 Wine equalisation tax: The operation of the wine equalisation tax system (Appendix 1)