Buying under quote
In certain circumstances you can quote your ABN when you buy wine and the sale is then exempt from WET. This is known as buying wine 'under quote'.
Entitlement to quote
You're only entitled to 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 sell 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 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, the quotation must include all of the information shown in the following example.
If you're buying wine from a wine producer, you must tell them on your quote if you intend to sell the wine GST-free. Otherwise, penalties may apply.
A quote will only be effective if it is provided at or before the time of the dealing it relates to.
Example - Quote
Quotation under the A New Tax System (Wine Equalisation Tax) Act 1999
The entity named below hereby quotes Australian business number
(insert number) __________________
The entity hereby notifies you that it intends/does not intend* to make a GST-free supply of the wine.
*Cross out whichever is not applicable if wine is being purchased from a wine producer.
Name of entity quoting___________________________________
Name of individual authorised to quote______________________
Signature of individual authorised to quote___________________
End of example
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 shown in the above example
- 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 and you make a purchase from the supplier that you are not entitled to quote for, you must notify the supplier at or before the time of purchase.
If you're importing wine, periodic quoting is not available. You can quote your ABN to the DIBP or authorise your customs broker to do this for each importation.
In certain circumstances you can quote your ABN when you buy wine. WET is not payable on a sale where the buyer has quoted their ABN.