Wine is exempt from WET if the sale of the wine is GST-free. The most common GST-free sales of wine are:
- exports from Australia, including
- wine exported under a contract of sale
- duty-free wine sales to travellers under the sealed bag system
- wine to be consumed on international flights and voyages
- wine supplied in hospitals, religious services or educational courses.
If you export wine on behalf of a buyer (including overseas travellers), you're exempt from paying WET and GST as long as you export the wine from Australia within 60 days of providing the invoice or receiving payment, whichever occurs first.
You need to keep any evidence of this export in your records so you can explain why you treated the wine as exempt.
If you've already paid WET on wine you export GST-free, you can claim a credit on your BAS.
A sale to hospitals, churches or educational institutions to enable them to provide wine to end users is not GST-free, but these purchases may be made under quote. The hospital, church or educational institution normally makes the GST-free supply to the end user.
Wine is normally exempt from WET if the sale of the wine is GST-free.