ATO Interpretative Decision
ATO ID 2001/274 (Withdrawn)
Goods and Services Tax
GST and Full Dental Crowns and BridgesFOI status: may be released
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This ATO ID is withdrawn as the ATO view is contained in paragraphs 64 to 75 of Class Ruling CR 2011/58 Goods and services tax: goods and services supplied by dental prosthetists and technicians (of the Oral Health Professionals Association) that applies to tax periods commencing on or after 1 July 2010. Despite its withdrawal, this ATO ID continues to be a precedential view for tax periods starting before 1 July 2010.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a dental laboratory, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies full dental crowns and bridges?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies full dental crowns and bridges.
Facts
The entity is a dental laboratory. In this case, the entity is supplying full dental crowns and bridges.
The full crowns and bridges that the entity supplies are specifically designed for people with an illness or disability, and are not widely used by people without an illness or disability.
There is no agreement between the entity and the recipient that the supply of the full crowns and bridges will not be treated as a GST-free supply.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-45(1) of the GST Act, a supply of a medical aid and appliance will be GST-free if:
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- it is covered by Schedule 3 to the GST Act (Schedule 3) or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (Regulations); and
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- it is specifically designed for people with an illness or disability; and
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- it is not widely used by people without an illness or disability.
Of particular relevance to this case is item 30 in the table in Schedule 3, which lists 'dentures and artificial teeth'. The phrase 'dentures and artificial teeth' is not defined in the GST Act. However, it is considered that 'artificial teeth' are those which are fabricated and replace natural teeth in form and function. The term 'artificial teeth' includes one single tooth as well as a multiple of teeth. As such, full crowns and bridges fall within the meaning of 'artificial teeth'.
As the full crowns and bridges fall within the scope of item 30 in the table in Schedule 3 to the GST Act, and are specifically designed for people with an illness or disability, and are not widely used by people without an illness or disability; the entity is making a GST-free supply under subsection 38-45(1) of the GST Act.
Date of decision: 15 June 2000
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 30
the regulations
Other References:
GST Consultative Forum on Health Issues Log - Issue 4.a.12
Keywords
Goods & services tax
GST-free
GST health
Medical aids & appliances
ISSN: 1445-2782
| Date: | Version: | |
| 15 June 2000 | Original statement | |
| You are here | 12 July 2013 | Archived |