ATO Interpretative Decision

ATO ID 2003/994 (Withdrawn)

Goods and Services Tax

GST and 'recognised professional' requirements for other health services
FOI status: may be released
Status of this decision: Decision Withdrawn 22 June 2007
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 provider of health services, a 'recognised professional' for the purposes of paragraph 38-10(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when the entity is a member of a branch of the relevant national professional association and this branch is located outside the State in which the entity practices that profession?

Decision

Yes, the entity is a recognised professional, for the purposes of paragraph 38-10(1)(b) of the GST Act, when the entity is a member of a branch of the relevant national professional association and this branch is located outside the State in which the entity practices that profession.

Facts

The entity is a provider of health services. The service that the entity provides is one of the services listed in the table in subsection 38-10(1) of the GST Act. The entity is a member of a branch of the national professional association that has uniform national registration requirements relating to the supply of services that the entity provides. This branch is located outside the State in which the entity practices that profession.

There is no law in the State, in which the entity practices, which regulates that particular health service.

The entity is registered for goods and services tax (GST).

Reasons for Decision

For the purposes of paragraph 38-10(1)(b) of the GST Act, a person is a recognised professional in relation to the supply of a service listed in the table in subsection 38-10(1) of the GST Act if:

•
the service is supplied in a State or Territory in which the person has a permission or approval, or is registered, under a State law or a Territory law prohibiting the supply of services of that kind without such permission, approval or registration, or
•
the service is supplied in a State or Territory in which there is no State law or Territory law requiring such permission, approval or registration, and the person is a member of a professional association that has uniform national registration requirements relating to the supply of services of that kind.

There is no law in the State, in which the entity practices, which regulates that particular health service. Accordingly, an entity practising in that State, will only satisfy the requirements for being a recognised professional where they are a member of a professional association with uniform national registration requirements that relate to the practice of that profession. Being eligible for membership of the relevant national professional association is not sufficient to meet these requirements.

The entity is a member of a branch of the national professional association that has uniform national registration requirements relating to the supply of services that the entity provides. Although this branch is located outside the State in which the entity practices that profession, there is no requirement under the GST legislation that the entity be a member of the local branch of the national association in the State or Territory in which the entity is practising. All that is required is that the health practitioner be a member of the national association.

Accordingly, the entity is a recognised professional for the purposes of paragraph 38-10(1)(b) of the GST Act, when the entity is a member of a branch of the relevant national professional association and that branch is located outside the State in which the entity practices that profession.

Date of decision:  13 June 2003

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   subsection 38-10(1)
   paragraph 38-10(1)(b)

Keywords
Goods and services tax
GST free
GST health
Section 38-10 - other health services

Business Line:  GST

Date of publication:  7 November 2003

ISSN: 1445-2782

history
  Date: Version:
  13 June 2003 Original statement
You are here → 22 June 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).