ATO Interpretative Decision
ATO ID 2001/284 (Withdrawn)
Goods and Services Tax
GST and supply of mouthguard devices to a dentistFOI status: may be released
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This ATO ID is withdrawn because the ATO view is contained in paragraph 42 and Attachment B item 151 of Class Ruling CR 2011/58 Goods and services tax: goods and services supplied by dental prosthetists and technicians (of the Oral Health Professionals Association) that applies to tax periods commencing on or after 1 July 2010. Despite its withdrawal, this ATO ID continues to be a precedential view for tax periods starting before 1 July 2010.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 dental laboratory, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a mouthguard device to a dentist?
Decision
No, the entity is not making GST-free supply under subsection 38-45(1) of the GST Act when it supplies a mouthguard device to a dentist. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a dental laboratory that supplies goods to dentists. In this case, the entity supplies a mouthguard device to a dentist. Mouthguard devices include mouthguards, mouthguard articulation, re-adapt mouthguards and mouthguard cases.
The entity is registered for goods and services tax (GST). The supply meets the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances is GST-free where the medical aid or appliance:
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- 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 (Regulations); and
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- is specifically designed for people with an illness or disability; and
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- is not widely used by people without an illness or disability.
Mouthguard devices are not covered by Schedule 3 or specified in the Regulations. Therefore, the supply of a mouthguard device from the entity to the dentist is not GST-free under subsection 38-45(1) of the GST Act.
The entity is registered for GST and the supply meets the other positive limbs of section 9-5 of the GST Act. Furthermore the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the supply is a taxable supply under section 9-5 of the GST Act.
Date of decision: 20 July 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
subsection 38-45(1)
Division 40
Schedule 3
the regulations
Keywords
Goods and services tax
GST health
Medical aids and appliances
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 20 July 2001 | Original statement | |
| You are here | 12 July 2013 | Archived |