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 one and a rate of 29%. 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 . Ensure its priority is less than the WET priority. In the end you should have something like the above.
Next we set the 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. 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.
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. You can run the Retail WET tax report in Winery Reports > Sales to calculate the WET tax amounts based off the different calculations available.
WET and Accounting Integration
WET can be passed though to external accounting packages. For this example we will use Xero as the accounting package:
You will need to set the following fields in the Tax Rate editor. The Linked Tax Rate Id should be and the Ext Tax Account Ref should map to your WET liability account.
When you create a sales order and after you sync to Xero you will see a view in accounts link.
This link will take you to the relevant invoice in Xero.