Wine producers may be entitled to a credit (rebate) of the WET amount paid on a wine dealing, or the amount of WET that would have been paid had the buyer not quoted, up to a maximum of $500,000 each financial year.
If the buyer quotes you can claim the producer rebate only if they have declared (in the quote) that they do not intend to make a GST-free supply of the wine.
To be a producer you must do one of the following:
- manufacture the wine from grapes, other fruit, vegetables or honey you produce or purchase
- provide the grapes, other fruit, vegetables or honey to a contract winemaker to be made into wine on your behalf
- subject your wine to a process of manufacture – for example, manufacturing finished wine from raw wine, or blending wines to make a commercially distinct wine (but you must reduce your claim by any earlier producer rebates).
You are not a producer if, for example, you simply purchase bulk wine and bottle it for sale.
The producer rebate is a rebate of up to $500,000 each financial year for wine producers. New Zealand wine producers may also be eligible to claim the producer rebate.