When selling your wine either in bulk or at the door, you’ll need to track how much Wine Equilisation Tax will be owed to the government. In this section we detail how to set up vintrace to track WET for reporting. Also, we show you how WET is tracked in Accounting Integration Packages such as Xero.
To begin we will configure the WET tax. If you’re completely new to tax configuration, start with this article on configuring tax rates.
Begin by adding a line for WET which is calculated first according to the ATO regulations. Ensure its Name is ‘WET’, has a priority of 1 and a rate of 29% (subject to, change by the government). If done correctly, you will see the yellow warning icon shown with the tooltip upon hovering your mouse.
Next add a line for GST. Be sure to click compound as WET has GST calculated upon it also (see the ATO link again). Ensure its priority is less than the WET priority. In the end you should have something like the above.
Next we set out tax rate to our desired sales price list. If you are new to sales price list, please read about them here.
Next we create a sales order. If you are new to Sales Orders please click here. Set its price list to be the one with the WET tax we just created. Then add an item we want to sell and have WET tax applied to.
And that’s it. You’ve configured your WET tax. You can see a line item’s individual tax amount in detail by mousing over the tax amount.
NOE: if the Sales Type is ‘Retail’, we need to defer calculating WET. Thus only GST is calculated at the time of sale. Retail WET is calculated at the end of the period during your BAS statement.
WET and Accounting Integration
WET can be passed though to external accounting packages. For this example we will use Xero as the accounting package:
Turn on the following fields in the Tax Rate editor: the ‘Linked Tax Rate Id’ and the ‘Ext Tax Account Ref’ on the WET tax rate.
For Xero, the Linked Tax Rate Id is ‘GST on Income’ which means all line items will have GST set.
The Ext Tax Account Ref is an account that links to your WET liability account in Xero. To learn more about creating, managing and linking accounts click here.
When you create a sales order and sync to Xero, you will see something like this: