EXCISE DUTY, WET, GST, And Other INDIRECT TAXES

Innovative Solutions to your Taxing Problems

As well as Excise Duty imported goods could be subject to one or more indirect taxes like the Wine Equalisation Tax (WET), the Goods and Service Tax (GST), etc.

We offer our clients various solutions as well as advice related to these Indirect taxes. Our team of experienced professionals provide valuable assistance in identifying potential opportunities for savings.

EXCISE DUTY

Australian Taxation Office state that “Excise duty is a tax on certain types of goods produced or manufactured in Australia, including alcohol, tobacco, fuel, and petroleum products. Equivalent customs duty is imposed on imported alcohol, tobacco, fuel and petroleum products, referred to as excise equivalent goods or EEGs. You have specific obligations to consider when dealing with excisable goods and EEGs.”

For example, Imported Japanese Coedo’s micro brewed five varieties of beer are each subject to Excise Tax

Simply, Excise Duty is charged whether they are produced in the Australia or imported. Excise duties are based on the quantity of goods rather than their value, and they very often tend to be at very high rates. This means that the movement and use of Excise goods is highly regulated and fraught with difficulties.

On 1 July 2010, the Australian Customs and Border Protection Service delegated responsibility for warehoused EEGs (Excise Equivalent Goods) to the Australian Taxation Office. They administer:

  • Customs warehouse licences that store EEGs
  • EEGs stored in customs warehouses

Therefore, manufacturers and importers of EEGs have to be specifically registered with the Australian Taxation Office, either as a dealer or shipper, or as a warehouse-keeper.

WINE EQUALISATION TAX (WET)

Australian Taxation Office state, “The wine equalisation tax (WET) is a value-based tax which is applied to wine consumed in Australia. It applies to assessable dealings with wine (unless an exemption applies) which include wholesale sales, untaxed retail sales and applications to own use.”

WET applies to the following alcoholic beverages:

  • Grape wine, including sparkling wine and fortified wine
  • Grape wine products such as marsala, vermouth, wine cocktails and creams
  • Other fruit wines and vegetable wines, including fortified fruit wines and vegetable wines

Imports like Kepplers Premium Irish Cider, are classified as a wine and subject to WET

GOODS AND SERVICES TAX (GST)

DID YOU KNOW?

That subject to eligibility criteria, importers who are registered for GST may be able to defer the payment on imported goods by participating in the Deferred GST Scheme. Once an importer is registered they can account for importations in their first Business Activity Statement (BAS) after they make an importation. We assist importers register for Deferred GST.

GST is applied at 10 per cent of the value of the taxable importation (VoTI). The value of the taxable importation is the sum of:

  • the customs value of the imported goods, and
  • any customs duty payable, and
  • the amount paid or payable to transport the goods to Australia and to insure the goods for that transport, and
  • any wine (WET) tax payable

THE SOLUTION IS OUR SERVICE

Curlett, Cannon & Galbell’s (CCG) team of specialists can provide help and advice to producers, manufacturers and others in the supply chain about all aspects of Excise Duty, WET application, Deferred GST administration, reporting and compliance. We have experience in assisting companies that have had problems with the control of Excise goods and WET implications. We can also help set up procedures for the approval of Excise Duty facilities and bond warehousing.