3.a.3. What is the GST status of services provided to hospital patients?
Non-interpretative – other reference (see GSTD 2012/4External Link).
The GST status of hospital services is determined by to whom the services are supplied and not by to whom they are provided. Hospital treatment is only GST-free when supplied to a patient.
The supply of hospital services to patients will be GST-free where it is the supply of hospital treatment as defined in section 121-5 of the Private Health Insurance Act 2007.
However, hospital services will not be GST-free where they relate to certain professional services such as cosmetic surgery for which a Medicare benefit is not payable or tattoo removal unless another GST-free provision applies (for example section 38-45).
Where a hospital contracts an independent third party to supply services to it, the supply will be a taxable supply unless another GST-free provision applies (for example section 38-45 or 38-60). It is considered that the definition of 'hospital treatment' in section 195-1 as related to the definition of that phrase in section 121-5 of the Private Health Insurance Act 2007 does not cover the supply of services to a hospital.