7.a.5. What is the GST status of police drug testing, water and food testing, pre employment drug screening and veterinary tests?
For source of ATO view, refer to issue 1.a of this issues register.
Drug testing, for either police or employers, are provided as a requirement of the Police Department or employers respectively for the purposes of the Police Department or employers respectively and does not involve ‘appropriate treatment’. As such, the recipient will be the Police Departmentor employers respectively and they will be taxable supplies.
General water and food testing are not a ‘treatment of the recipient’ andare not GST-free under subdivision 38-B.
The performance of services on animals will not be ‘appropriate treatment of the recipient of the supply’. ‘*Recipient’ is defined in section 195-1 as '... the entity to which the supply was made' and the definition of ‘entity’ in section 184-1(1) does not include animals.