Reporting Wine Equalisation Tax and GST on the BAS

This example uses a café trading on and purchasing wine as a stock item, therefore the entry is recorded as a trading expense and not an asset sale.

GST on WET

WET is typically calculated as 29% of the taxable supply for a wholesale sale or 29% of the notional wholesale selling price for other dealings.

GST is typically collected on wine sales at 10% of the WET inclusive price.

1. The WGST tax code needs to be set up as follows:

Wine tax on payment

2. An appropriate expense account needs to be set up where the Default GST Code in the expense account. 

Note All entries to this account will default to 12.9% GST.

3. The following is an example of payment transaction using WET and WGST

The payment will appear on the BAS as shown here.

Wine Tax on Receipt

2. Setup a new account for Wine Sales subject to WET and set the default GST code to WGST

3. Enter the receipt as shown below, with the WET component in its own line coded to the GST liability account for WET and using the tax code WET, and the Net and GST values are on another line with tax code WGST.

Receipt will report on BAS as shown here