Wine is exempt from WET if the:
- dealing is a GST-free supply
- purchaser quotes at or before the time of the sale in the approved form.
The most common GST-free supplies 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 to end users.
Exporting wine on behalf of a buyer
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.
Until 30 June 2018, you can claim a credit for WET you've already paid on 2017 and earlier vintage wine that you export GST-free.
You cannot claim a credit in these circumstances for:
- 2018 and later vintage wine from 1 January 2018
- 2017 and earlier vintage wine from 1 July 2018.
Purchases made under quote
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.
- WET credits
- GST Act 1999: Division 38 (GST-free supplies) for requirements that hospitals, religious services or educational courses need to meet.