ATO Interpretative Decision
ATO ID 2003/850
Goods and Services Tax
GST and supply of a toilet seat and accessories for people with disabilitiesFOI status: may be released
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This ATO ID contains references to provisions of the A New Tax System (Goods and Services Tax) Regulations 1999, which have been replaced by the A New Tax System (Goods and Services Tax) Regulations 2019. This ATO ID continues to apply in relation to the remade Regulations.
A comparison table which provides the replacement provisions in the A New Tax System (Goods and Services Tax) Regulations 2019 for regulations which are referenced in this ATO ID is available.
Status of this decision: Decision Current
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplier of medical aids and appliances, 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 a toilet seat, for use by people with disabilities, together with associated accessories?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a toilet seat, for use by people with disabilities, together with associated accessories.
Facts
The entity is a supplier of medical aids and appliances. The entity supplies a toilet seat for use by people with disabilities. The entity also supplies associated accessories for use with the toilet seat.
The toilet seat is an ergonomically designed bathroom aid that gives its users independence, safety and privacy. The toilet seat is electrically controlled and is designed to enable the elderly, infirmed and those with disabilities to go to the toilet without the aid of a carer. Accessories include swing away handles, oversize buttons and comfort seats.
The toilet seat and associated accessories are specifically designed for people with disabilities and are not widely used by people without disabilities.
There is no agreement between the entity and the recipient that the supply 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, the supply of certain medical aids or appliances is GST-free where the medical aid or appliance:
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- 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 (GST Regulations),
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- is specifically designed for people with an illness or disability, and
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- is not widely used by people without an illness or disability.
There are two separate parts to the entity's supply, these being the toilet seat and associated accessories. Therefore, in order to determine the GST status of the supply, it is necessary to look at each part of the supply separately.
Item 111 in the table in Schedule 3 (Item 111) lists 'bathboards or toilet seats for people with disabilities'. The entity's toilet seat is electrically controlled and is designed to enable the elderly, infirmed and those with disabilities to go to the toilet without the aid of a carer. Therefore, the toilet seat is specifically designed for people with disabilities and is covered by Item 111.
Item 18 in the table in Schedule 3 to the GST Regulations (Item 18) lists 'customised modifications and accessories for the aids and appliances mentioned in items 111 to 121 of Schedule 3 to the GST Act'. The entity supplies accessories, such as swing away handles, oversize buttons and comfort seats, for use with the toilet seat that is covered by Item 111. As such, the accessories for the toilet seat are covered by Item 18.
The toilet seat and accessories are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a toilet seat, for use by people with disabilities, together with associated accessories.
Date of decision: 8 July 2003
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 111
Schedule 3 table item 18
Keywords
Goods and services tax
GST free
GST health
Section 38-45 - medical aids & appliances
ISSN: 1445-2782