Last updated 12/01/2021
The Wine Equalisation Tax (WET) is a value-based tax collected when wine is bought or sold in Australia.
If you make wine, import wine into Australia or sell it wholesale, you'll have to account for WET. Currently, WET is a tax of 29% of the wholesale value of wine.
Within Cin7 this means that when creating a Purchase Order or Sales Order, an additional 29% should be added to the wholesale value of applicable items in the order. This additional amount must then be passed to the appropriate account in your accounting system.
So you don't have to remember to apply WET tax, you can assign this tax to specific products, or specific customers or suppliers, so that the tax is automatically applied for the correct products.
You can now enable WET on your end. This can be done by going to the Settings page for each of the modules below:
WET setup has to be done by the Cin7 team - so simply ask your onboarder or the support team to set up WET for you. This will include the following:
Please note that these options will only be visible in Australian (AU) accounts.
Once the above options have been set up for you, you will be able to flag products for which WET is applicable.
To do this:
Next, assign each applicable customer a WET option. There are two options:
|WET on Retail||Tax to be charged on retail sales of wine.|
|WET on Wholesale||Tax to be charged on sales or purchases from/to wholesalers.|
To assign these options to a customer:
Now it's time to see the result of all the settings! You will notice that in each purchase order there is a field called WET Tax Status. When a contact is entered that has a WET option assigned to them, the field will automatically be populated with the rate assigned to the contact. If no WET option has been assigned you can always manually enter the correct option.
You will be able to see what product has WET assigned from the WET column in the line item list.
There are three relevant scenarios:
For Purchase Orders you will almost certainly use 'WET on Wholesale'.
When a product is entered that has WET Tax checked in its product details, WET Tax will be calculated for that item.
The total WET for a Purchase Order order will be shown in the Surcharge field at the bottom of an order.
For WET on wholesale sales:
The total WET for a Sales Order will be shown in the Surcharge field at the bottom of an order:
For WET on Retail Sales:
Because tax is included in the final price, it is not shown in the Surcharge field; however it is shown - for reference - in the consumer WET field.
WET can also be set up for the POS for retail sales only.
In order for WET to be applied in the POS the following criteria must be true:
WET will be calculated as above and will appear also appear in the Sales Order when ultimately synced to the backend.
To prepare QBO to receive WET applicable transactions, you must first make sure you have a current liabilities account for WET.
Next, add this account number to your QBO settings in Cin7.
Provided you have followed the above instructions above, when importing a Purchase Order the specified liability account will be debited. When importing a Sales Order to QBO the specified liability account will be credited.
Finally, to get an overview of the Taxes being collected, you can view a report:
In this report, you will be able to see the total sales and total taxes collected.