WET applies to all wholesale sales of wine in Australia but is generally paid only on the last wholesale sale – such as a sale from a winery or distributor to a restaurant or bottle shop.
If there's an earlier wholesale sale before the wine reaches the retailer – for example, a sale from a winery to a distributor – it's exempt from WET if the sale is GST-free, or the transaction happens under quote.
So, if you're:
- selling wine wholesale, and
- registered or required to be registered for GST
then you must:
- charge WET on the sale, and
- show the amount of WET on the invoice
unless:
- you receive a valid ABN quotation from the buyer at or before the time of sale, or
- the sale is GST-free.
If you regularly sell wine to buyers who are entitled to quote their ABN, they can provide you with a periodic quotation to cover their eligible wine purchases for up to one year (so that they don't need to provide you with a quotation every time they buy wine).
You should monitor the dates on these periodic quotations to ensure the quotes are still valid.
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WET is payable on wholesale sales. Most commonly, these are sales to businesses that will then sell the wine by retail.