ATO Interpretative Decision

ATO ID 2001/283 (Withdrawn)

Goods and Services Tax

GST and supply of inlays, onlays and overlays to a dentist
FOI status: may be released

This ATO ID is withdrawn as the ATO view is contained in Attachment B items 554 to 569, item 734 and item 778 of Class Ruling CR 2011/58 Goods and services tax: goods and services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.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 inlays, onlays and overlays to a dentist?

Decision

No, the entity is not making GST-free supply under subsection 38-45(1) of the GST Act when it supplies inlays, onlays and overlays to a dentist. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity is a dental laboratory that supplies goods to dentists. In this case, the entity is suppling inlays, onlays and overlays to a dentist. Inlays, onlays and overlays fill or coat a natural tooth restoring its form and function.

The entity is registered for goods and services tax (GST). The supply meets the other positive limbs of section 9-5 of the GST Act.

Reasons for Decision

Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances is GST-free where the medical aid or appliance:

•: 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
•: is specifically designed for people with an illness or disability; and
•: is not widely used by people without an illness or disability.

Inlays, onlays and overlays are not specifically listed in Schedule 3 or the Regulations. Therefore, it needs to be determined whether they are covered by any of the items in Schedule 3 or the Regulations. The only item of relevance to this case is item 30 in the table in Schedule 3 to the GST Act (Item 30) which lists 'dentures and artificial teeth'. Inlays, onlays and overlays fill or coat a natural tooth to restore its form or function. They are not part of a denture or an artificial tooth. Therefore, inlays, onlays and overlays are not covered by Item 30. As such, the supply of inlays, onlays and overlays from the entity to the dentist is not GST-free under subsection 38-45(1) of the GST Act.

The entity is registered for GST and the supply meets the other positive limbs of section 9-5 of the GST Act. Furthermore the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the supply is a taxable supply under section 9-5 of the GST Act.

Date of decision: 20 July 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   subsection 38-45(1)
   Division 40
   Schedule 3
   Schedule 3 table item 30

A New Tax System (Goods and Services Tax) Regulations 1999
the regulations

Keywords
Goods and services tax
GST health
Medical aids and appliances
Taxable supply

Business Line: Indirect Tax

Date of publication: 8 September 2001

ISSN: 1445-2782

history

	Date:	Version:
	20 July 2001	Original statement
You are here	12 July 2013	Archived

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