What if Al’s sells untaxed wine?
If Al’s purchases wine from a winemaker who is not registered or required to be registered for GST, Al’s will need to pay WET when it sells that wine. This is because no WET was payable when Al’s bought the wine. For a retail sale, the taxable value will be half the selling price of the wine. For a wholesale sale, refer to the above calculation. Example Al’s purchases a bottle of wine from an unregistered winemaker for $15. There’s no GST credit available. Al’s makes a retail sale of that bottle of wine for $30, including WET and GST. To find the amount of wine equalisation tax and GST payable, Al’s uses this calculation: GST payable ($30 x 1/11) $2.73 Wine equalisation tax payable ($30 x 1/2 x 29%) $4.35 (include at label 1C) When can Al’s claim credits for overpaid WET? Legislation allows for some circumstances where credits for overpaid wine equalisation tax can be claimed at the WET refundable label 1D. For instance, Al’s may be entitled to a WET credit when it pays tax on the purc
