ATO Interpretative Decision
ATO ID 2002/867 (Withdrawn)
Goods and Services Tax
GST and thermal imagingFOI status: may be released
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This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, an individual, making a GST-free supply under subsection 38-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies digital infrared thermal imaging services to a patient?
Decision
No, the entity is not making a GST-free supply under subsection 38-10(1) of the GST Act when it supplies digital infrared thermal imaging services to a patient. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is an individual. The entity supplies digital infrared thermal imaging services to a patient. Digital infrared thermal imaging is a diagnostic tool for early detection of breast cancer and for location of the origin of pain.
The entity is not a medical practitioner, but carries on business independently in a medical centre. A medicare benefit is not payable for the entity's services.
The entity's supply is not GST-free as a medical service under section 38-7 of the GST Act.
The entity is not supplying any of the relevant services specified in the table in subsection 38-10(1) of the GST Act or of a kind specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations).
The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Under subsection 38-10(1) of the GST Act, an entity makes a GST-free supply of health services if:
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- it provides a service of a kind specified in the table in subsection 38-10(1) of the GST Act or of a kind specified in the GST Regulations (paragraph 38-10(1)(a) of the GST Act); and
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- the entity is a recognised professional in relation to the supply of services of that kind (paragraph 38-10(1)(b) of the GST Act); and
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- the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the recipient of the supply (paragraph 38-10(1)(c) of the GST Act).
Thermal imaging is not specified in the table in subsection 38-10(1) of the GST Act. Therefore, a supply of thermal imaging services, in itself, does not satisfy the requirement in paragraph 38-10(1)(a) of the GST Act.
However, the requirement in paragraph 38-10(1)(a) of the GST Act is satisfied where the supplier is supplying one of the services specified in the table in subsection 38-10(1) of the GST Act and thermal imaging is a standard technique or a component of the supply of that specified service. For example, 'Nursing' is a service in the table in subsection 38-10(1) of the GST Act for which thermal imaging may be considered to be a component.
The entity is supplying thermal imaging services. The entity is not supplying a nursing service or any other health service specified in the table in subsection 38-10(1) of the GST Act or the GST Regulations. Therefore, the requirement in paragraph 38-10(1)(a) of the GST Act is not satisfied and the supply is not GST-free under subsection 38-10(1) of the GST Act.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act or input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies thermal imaging services to a patient.
Date of decision: 21 May 2002
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
subsection 38-10(1)
paragraph 38-10(1)(a)
paragraph 38-10(1)(b)
paragraph 38-10(1)(c)
Division 40
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Keywords
Goods & services tax
GST-free
GST health
Section 38-10 - other health services
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 21 May 2002 | Original statement | |
| You are here | 22 June 2007 | Archived |