ATO Interpretative Decision
ATO ID 2002/383 (Withdrawn)
Goods and Services Tax
GST and chelation therapy that is not for the treatment of heavy metal poisoningFOI status: may be released
-
This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, a medical centre operator, making a GST-free supply under section 38-7 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies chelation therapy to a client where the therapy is not for the treatment of heavy metal poisoning?
Decision
No, the entity is not making a GST-free supply under section 38-7 of the GST Act, when it supplies chelation therapy to a client where the therapy is not for the treatment of heavy metal poisoning. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a medical centre operator. The entity supplies chelation therapy to a client. Chelation therapy is the intravenous administration of ethylenediamine tetra-acetic acid or any of its salts.
The entity's supply of therapy to the patient is not for the treatment of heavy metal poisoning. The treatment is administered by a registered nurse under the supervision of a medical practitioner. These services meet the definition of 'professional services' in section 195-1 of the GST Act.
The entity is registered for goods and services tax (GST) and the supply meets the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Under subsection 38-7(1) of the GST Act, a supply of a medical service is GST-free. However, paragraph 38-7(2)(a) of the GST Act provides that the supply of a medical service is not GST-free if it is a supply of a professional service rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations 1975 made under the Health Insurance Act 1973 (other than prescribed circumstances set out in paragraphs 14(2)(ea), (f) and (g)).
Paragraph 14(2)(a) of the Health Insurance Regulations provides that professional services rendered in relation to the provision of chelation therapy otherwise than for the treatment of heavy-metal poisoning are professional services rendered in prescribed circumstances.
The entity's supply of professional services relates to chelation therapy that is not for the treatment of heavy-metal poisoning and, as such, the service is excluded from being GST-free under subsection 38-7(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 neither GST-free under any other provision in Division 38 of the GST Act nor 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 chelation therapy to a client where the therapy is not for the treatment of heavy metal poisoning.
Date of decision: 4 December 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
section 38-7
subsection 38-7(1)
paragraph 38-7(2)(a)
Division 40
section 195-1
The Act Health Insurance Regulations 1975
regulation 14
paragraph 14(2)(a)
paragraph 14(2)(ea)
paragraph 14(2)(f)
paragraph 14(2)(g)
Keywords
Goods & services tax
GST-free
Section 38-7 - medical services
Supplies & acquisitions
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 4 December 2001 | Original statement | |
| You are here | 4 May 2007 | Archived |
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
