ATO Interpretative Decision
ATO ID 2001/510 (Withdrawn)
Goods and Services Tax
GST and the importation of needles and syringesFOI status: may be released
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This ATO ID is withdrawn as it is a simple restatement of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, an importer of medical aids and appliances, 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 needles and syringes?
Decision
Yes, the entity is making a non-taxable importation under paragraph 13-10(b) of the GST Act when it imports needles and syringes.
Facts
The entity is an importer of medical aids and appliances. In this case, the entity is importing needles and syringes for use by people with an illness or disability. The needles and syringes are not to be widely used by people who do not have 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 a non-taxable importation if the thing imported would have been GST-free or input taxed if it had been supplied within Australia.
Of relevance in this instance is subsection 38-45(1) of the GST Act which states that the supply of a medical aid or appliance 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 (GST 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.
Item 37 in the table in Schedule 3 (item 37) lists 'needles and syringes'.
In this case, the needles and syringes are listed in Schedule 3 and the needles and syringes are for use by people with an illness or disability and are not to be widely used by people who do not have an illness or disability. As such, the supply of the needles and syringes would satisfy the requirements of subsection 38-45(1) of the GST Act to be GST-free as medical aids or appliances if supplied within Australia.
Therefore, as the supply of the needles and syringes is GST-free if supplied within Australia, the importation of the needles and syringes is a non-taxable importation under paragraph 13-10(b) of the GST Act.
Date of decision: 11 September 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
paragraph 13-10(b)
subsection 38-45(1)
Schedule 3
Schedule 3 table item 37
The regulations
Other References:
GST Consultative Forum on Health Issues Log - Issue 4.a.4
Keywords
Goods & services tax
GST free
GST health
Section 38-45 - medical aids & appliances
Imports
Non taxable importations
ISSN: 1445-2782
| Date: | Version: | |
| 11 September 2001 | Original statement | |
| You are here | 24 November 2006 | Archived |