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Edited version of your written advice
Authorisation Number: 1013071478795
Date of advice: 24 August 2016
Ruling
Subject: GST and supply of oral appliance for treatment of sleep apnea
Question 1
Is the supply of the oral appliance to treat sleep apnea GST-free under subsection 38-45(1) of the A New Tax System (goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the supply of the oral appliance to treat sleep apnea is GST-free under subsection 38 45(1) of the GST Act at all points in the supply chain as it is covered by item 75 - 'mandibular advancement splints' of Schedule 3 to the GST Act and it is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.
Relevant facts and circumstances
The oral appliance is designed to treat sleep apnea and is a medical device that is registered and listed with the Therapeutic Goods Administration (TGA). It is an alternative for the treatment of patients with milder obstructive sleep apnea. It can be fitted and adjusted by trained sleep care providers and dentists.
Loud or chronic snoring can be associated with a sleep disorder and the oral appliance is a product to reduce snoring. The oral appliance works by a technique called 'mandibular repositioning' in which it advances and holds the lower jaw in a forward position so that the airway is opened at night. It is worn in the mouth whilst sleeping. This improves breathing and reduces snoring and sleep apnea.
Mandibular repositioning to reduce snoring and sleep apnea has been safely prescribed by dentists and physicians for several decades. Since the oral appliance is adjustable it can be better fitted to the patient to avoid potential problems like temporomandibular joint disorder (TMJ). Unlike other products that lock your jaw into a setting, its design provides micro-calibration to insure against TMJ.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-45(1)
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