ATO Interpretative Decision
ATO ID 2001/134
Goods and Services Tax
GST and importation of hypodermic safety syringesFOI status: may be released
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, an importer, making a non-taxable importation under paragraph 13-10(b) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports hypodermic safety syringes?
Decision
Yes, the entity is making a non-taxable importation under paragraph 13-10(b) of the GST Act, when it imports hypodermic safety syringes.
Facts
The entity is an importer of medical aids and appliances. In this case, the entity is importing hypodermic safety syringes. These syringes are specifically designed for people with an illness or disability. They are not widely used by people without an illness or disability.
The entity is registered for goods and services tax (GST).
Reasons For Decision
Under paragraph 13-10(b) of the GST Act, an importation is classed as a non-taxable importation if it would have been a supply that was GST-free or input taxed, if it had been a supply. Therefore, in order for the importation of hypodermic safety syringes to be non-taxable, the supply of hypodermic safety syringes must be GST-free.
Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances will be 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 2019(Regulations); and
- •
- is specifically designed for people with an illness or disability; and
- •
- is not widely used by people without an illness or disability.
Item 37 of Schedule 3 specifies 'needles and syringes'. The hypodermic safety syringes in question, are considered to be specifically designed for people with an illness or disability. Furthermore, it is considered that these hypodermic syringes are not widely used by people without an illness or disability. As such, the supply of these hypodermic safety syringes is GST-free under subsection 38-45(1) of the GST Act.
Therefore, as the supply of these hypodermic safety syringes is GST-free under subsection 38-45(1) of the GST Act; the importation of these syringes is also non-taxable under paragraph 13-10(b) of the GST Act.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019. |
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 13-5
paragraph 13-10(b)
subsection 38-45(1)
Schedule 3
Schedule 3 item 37
The Regulations
Other References:
GST Consultative Forum on Health - Issues Log issue 4.a.5
Keywords
Goods & services tax
GST free
GST health
Medical aids & appliances
Imports
Non taxable importations
ISSN: 1445-2782