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Edited version of private advice
Authorisation Number: 1052398155209
Date of advice: 19 May 2025
Ruling
Subject: Wine equalisation tax - product classification
Question 1
Are you entitled to a WET credit under section 17-5 of the A New Tax System (Wine Equalisation Tax) Act 1999 (WET Act) for overpaid WET in circumstances where you provide a post-sale discount to your customers in respect of sales of certain products?
Answer 1
Yes
This ruling applies for the following period:
1 July 20XX to 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You make sales of certain products that are subject to WET in Australia to retailers.
You are liable for WET on these sales.
Under your agreements with the retailers, you negotiate promotional sales for these products biannually.
These products are subsequently sold by the retailers to end consumers at a discounted price.
You subsequently provide a discount to the retailers in relation to the sales of these products.
Relevant legislative provisions
A New Tax System (Wine Equalisation Tax) Act 1999 section 5-5
A New Tax System (Wine Equalisation Tax) Act 1999 section 17-5
A New Tax System (Wine Equalisation Tax) Act 1999 section 33-1
A New Tax System (Goods and Services Tax) Act 1999 section 9-75
Does Division 165 apply to this private ruling?
No
Reasons for decision
The WET credits table in section 17-5 of the WET Act provides a number of grounds for a credit of WET. Broadly these grounds ensure that WET is not paid more than once on the same wine and is paid at the correct amount on wine to which it should apply.
Applicable to your circumstances is credit ground CR1 in the WET Credits table in section 17-5 of the WET Act. This credit ground provides a credit for WET that has been paid that was not legally payable. The amount of credit payable under this ground is the amount overpaid to the extent that you have not passed it on. An amount of WET is not considered to be passed on if it has been charged and subsequently refunded.
You will have paid an amount not legally payable where you have paid WET based on the price of the wine prior to the discount being applied. This is because you are only liable to pay WET on the price for which the wine is sold, which does not include the discount.