ATO Interpretative Decision

ATO ID 2001/124

Goods and Services Tax

GST and supply of in vitro fertilisation embryo freezing services
FOI status: may be released

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Issue

Is the entity, a medical practitioner who provides in vitro fertilisation (IVF) treatment, making a GST-free supply under subsection 38-7(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it provides an embryo freezing service as part of a patient's IVF treatment?

Decision

Yes, the entity is making a GST-free supply under subsection 38-7(1) of the GST Act, when it provides an embryo freezing service as part of a patient's IVF treatment.

Facts

The entity is a medical practitioner (as defined in section 195-1 of the GST Act) who provides IVF treatment. The entity freezes a patient's embryos as part of this treatment. The entity is registered for goods and services tax.

A medicare benefit is not payable for this service. The service is not rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations made under the Health Insurance Act 1973 nor for cosmetic reasons.

In this case, the service is generally accepted in the medical profession as necessary for the appropriate treatment of the patient.

Reasons For Decision

A supply of medical services is GST-free under subsection 38-7(1) of the GST Act.

A 'medical service' is defined under section 195-1 of the GST Act to mean:

•
a service for which a medicare benefit is payable under Part II of the Health Insurance Act 1973 ; or
•
any other service supplied by or on behalf of a medical practitioner or approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply.

In this case, there is no medicare benefit payable for the service provided by the entity. However, the supply of an embryo freezing service to the patient as part of the patient's IVF treatment is facilitated by a medical practitioner and the service is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply. Accordingly, the supply meets the definition of a medical service under section 195-1 of the GST Act.

Therefore, as the medical service is not excluded under subsection 38-7(2) of the GST Act, the entity is making a GST-free supply of embryo freezing services to its patient under subsection 38-7(1) of the GST Act.

[Note: If an entity such as a medical scientist provides an embryo freezing service, the supply is not GST-free under section 38-7 of the GST Act as a medical practitioner is not facilitating the embryo freezing service.]

Date of decision:  7 August 2000

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 38-7
   subsection 38-7(1)
   subsection 38-7(2)
   section 195-1

Health Insurance Act 1973
   Health Insurance Act 1973

Keywords
Goods and services tax
GST free
GST health
GST other health goods
GST other health services

Business Line:  GST

Date of publication:  25 July 2001

ISSN: 1445-2782

history
  Date: Version:
You are here → 7 August 2000 Original statement
  4 May 2007 Archived

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