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Edited version of private ruling
Authorisation Number: 1011564354575
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Ruling
Subject: GST and braille/tactile signs
Questions and answers
1. Is your supply of Braille/tactile signs that include words and/or diagrams a GST-free supply?
No, your supply of Braille/tactile signs that include words and/or diagrams is not a GST-free supply. Your supply of the Braille/tactile signs is a taxable supply.
2. Is your supply of Braille signs that only include Braille, a GST-free supply?
Yes, your supply of Braille signs that only include Braille is a GST-free supply.
3. Is your importation of stainless steel balls used to make the Braille signs a non-taxable importation?
No, your importation of stainless steel balls used to make the Braille signs are not non-taxable importations. Your importation of the stainless steel balls are a taxable importation.
Relevant facts:
You are registered for goods and services tax (GST). You supply Braille/tactile signs for amenities such as toilets in shopping centres and to other businesses.
Some of the signs contain words (for example 'toilet'), graphics (for example, the silhouette of a male or female person) and Braille. You also supply signs that just contain Braille without words or pictures. These signs can only be used by people who are able to read Braille.
You import stainless steel balls which are used to make the Braille component of the sign. The stainless steel balls are glued into the drilled holes manually.
Reasons for decision
Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) the supply of a medical aid or appliance 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 (GST Regulations)
· is specifically designed for people with an illness or disability, and
· is not widely used by people without an illness or disability.
Item 151 in the table in Schedule 3 (Item 151) lists 'auditory/tactile alerting devices'. The phrase 'auditory/tactile alerting devices' is not defined in the GST Act. Accordingly, it is appropriate to examine the ordinary meaning of that phrase.
The Macquarie Dictionary (1997), 3rd edn, The Macquarie Library Pty Ltd, New South Wales defines 'auditory' to mean 'relating to hearing, or the sense of hearing….', 'tactile' to mean '1. of or relating to the organs of sense or touch. 2. perceptible to the touch…', and 'alert' to mean '…4. an alarm or warning…'
Accordingly, an auditory/tactile alerting device is a device which is designed to alert a visually impaired person to a presence, occurrence or danger through the person's sense of touch or hearing.
The Braille/tactile signs you supply are designed to alert visually impaired persons to the presence and location of toilets and other things in shopping centres and other buildings. The sign comprises words, diagrams and a corresponding Braille translation. The Braille component of the sign uses Braille to relay information to the visually impaired through their sense of touch. Due to its Braille component, the sign is an auditory/tactile alerting device and is covered by Item 151.
The remaining requirements in subsection 38-45(1) of the GST Act are that the sign must be specifically designed for people with an illness or disability and not widely used by people without an illness or disability. The sign is designed for and used in public buildings. It is used by any person whether sighted or visually impaired, who enters the building and uses the sign for information (for example location of a toilet). Therefore, the sign is widely used by people without an illness or disability. As such, the supply of the Braille/tactile signs that include words and/or diagrams does not meet the remaining requirement of subsection 38-45(1) of the GST Act and is not GST-free.
You are registered for GST, you are supplying the signs for consideration in the course or furtherance of an enterprise you carry on and the supply of the signs is connected with Australia. As such, you are making a taxable supply under section 9-5 of the GST Act when you supply the Braille/tactile signs that include words and/or diagrams.
The Braille signs you supply that only include Braille are auditory/tactile alerting devices and are covered by Item 151. The Braille signs are designed specifically for the purpose of communicating information to the visually impaired and are only used by people able to read Braille. The signs do not comprise of any non-Braille component for use by the sighted, such as words or diagrams and therefore are not widely used by people who are not visually impaired. As such, the Braille signs that only include Braille are GST-free under subsection 38-45(1) of the GST Act.
Under section 13-5 of the GST Act you make a taxable importation if:
· goods are imported, and
· you enter the goods for home consumption (within the meaning of the Customs Act 1901).
However, the importation is not a taxable importation to the extent that it is a non-taxable importation.
You imported stainless steel balls to be used to make Braille signs and these were entered for home consumption. As such, it needs to be determined whether your importation of the goods is a non-taxable importation.
Under section 13-10 of the GST Act an importation is a non-taxable importation if:
· it is a non-taxable importation under Part 3-2 of the GST Act, or
· it would have been a supply that was GST-free or input taxed if it had been a supply.
Part 3-2 of the GST Act sets out the importations that are non-taxable. No GST is payable on an importation that is non-taxable.
Subsection 42-5(1) of the GST Act provides that an importation of goods is a non-taxable importation if the goods are covered by item 4,8, 15, 18A, 18B, 18C, 21, 21A, 23A, 23B, 24, 25A, 25B, 25C, 32A, 32B, 33A, 33B or 64 in Schedule 4 to the Customs Tariff Act 1995.
Subsection 42-5(1C) of the GST Act provides that an importation of goods is a non-taxable importation if the goods are covered by item 1A, 1B, 1C, 1D, 1E, 5,6, 9 or 16 in Schedule 4 to the Customs Tariff Act 1995.
The Tax Office is unable to give advice as to what is covered by these items in Schedule 4 to the Customs Tariff Act 1995. You would need to contact Customs to determine what relates to these items by emailing at information@customs.gov.au or phoning on 1300 363 263.
A supply would be GST-free or input taxed if it had been a supply and the supply would have been covered by Division 38 or Division 40 of the GST Act. There are no provisions in Division 40 that would have made the supply input taxed.
As mentioned above, Item 151 includes auditory/tactile alerting devices. Braille/tactile signs are auditory tactile alerting devices.
Subsection 38-45(2) of the GST Act provides that a supply is GST-free if the thing supplied is supplied as a spare part for, and is specifically designed as a spare part for, another thing the supply of which would be GST-free under subsection 38-45(1) of the GST Act.
A spare part is a part which has been specifically designed to replace a faulty, worn, or broken part of a medical aid or appliance. Whilst the stainless steel balls are being used to make a Braille sign, they are not specifically designed as a spare part for Braille signs. They are a component of the sign. As such, a supply of the stainless steel balls would not be a GST-free supply under subsection 38-45(2) of the GST Act. Therefore, you are not making a non-taxable importation when you import the stainless steel balls. You are making a taxable importation under section 13-5 of the GST Act.
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