ATO Interpretative Decision
ATO ID 2001/512 (Withdrawn)
Goods and Services Tax
GST and full and partial denturesFOI status: may be released
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This ATO ID is withdrawn as the ATO view is contained in paragraphs 23, 64 to 75 of Class Ruling CR 2011/58 Goods and services tax: goods and services supplied by dental prosthetists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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 full and partial dentures?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies full and partial dentures.
Facts
The entity is a dental laboratory. The entity supplies full and partial dentures.
The full and partial dentures are designed specifically for people with an illness or disability and are not widely used by people without an illness or disability.
There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-45(1) of the GST Act, 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 30 in the table in Schedule 3 (Item 30) lists 'dentures and artificial teeth'. The term 'denture' is not defined in the GST Act and therefore takes on its ordinary meaning. The Macquarie Dictionary (1997) defines a 'denture' as 'an artificial restoration of several teeth (partial denture) or all of the teeth of either jaw (full denture).'
Therefore, full and partial dentures are 'dentures' for the purposes of Item 30. Additionally, the full and partial dentures are designed specifically for people with an illness or disability and are not widely used by people without an illness or disability.
As such, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies full and partial dentures.
Date of decision: 31 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 30
The regulations
Other References:
The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales
Keywords
Goods and services tax
GST free
GST health
Section 38-45 - medical aids & appliances
ISSN: 1445-2782
| Date: | Version: | |
| 31 August 2001 | Original statement | |
| You are here | 12 July 2013 | Archived |