Edited version of private ruling

Authorisation Number: 1011480175590

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Ruling

Subject: GST and importing scooters and mobility wheelchairs

Question 1

Is the importation of the products a non-taxable importation?

Answer

Yes.

Question 2

Is the importation of accessories and spare parts in respect to the products a non-taxable importation?

Answer

Yes.

Relevant facts and circumstances

· You are registered for goods and services tax (GST).

· You import products that are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability.

· You import accessories and spare parts in respect to the products.

· The accessories and spare parts cannot be used for any other appliance other than the products.

Reasons for decisions

Question 1

Section 13-5 of the GST Act provides that you make a taxable importation if goods are imported into Australia, and you enter the goods for home consumption (within the meaning of the Customs Act 1901). However, the importation is not a taxable importation to the extent that it is a non-taxable importation.

Section 13-10 of the GST Act provides that an importation is a non-taxable importation if it is a
non-taxable importation under Part 3-2 of the GST Act or the importation would have been a supply that was GST-free or input taxed if it had been a supply.

Subsections 42-5(1) and (2) of the GST Act provide that an importation of goods is a non-taxable importation if the goods are covered by certain specified items in Schedule 4 to the Customs Tariff Act 1995.

We have not considered whether your importation is a non-taxable importation under Part 3-2 of the GST Act. Therefore, we have considered whether your importation is a non-taxable importation because if it had been a supply it would have been GST-free or input taxed.

There are no provisions of the GST Act that would make the supplies of the products input taxed. There is only one provision that may make the supplies GST-free. That provision is section 38-45 of the GST Act.

Subsection 38-45(1) of the GST Act provides that a supply of a medical aid or appliance is GST-free if it is:

· covered by an item in Schedule 3 of the GST Act or in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)

· specifically designed for people with an illness or disability, and

· not widely used by people without an illness of disability.

Item 105 in Schedule 3 of the GST Act includes your products. You have advised the products are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. Therefore, the products meet the requirements of subsection 38-45(1) of the GST Act in that they are:

· covered by Item 105 in Schedule 3 of the GST Act

· specifically designed for people with an illness or disability, and

· not widely used by people without an illness or disability.

As such, the supply of the products would be a GST-free supply under subsection 38-45(1) of the GST Act if it were a supply.

Thus, the importation of the products is a non taxable importation under section 13-10 of the GST Act because a supply of the products would be a GST-free supply.

Please note, once the supply of a product meets the requirements of subsection 38-45(1) of the GST Act, the supply is GST-free all the way down the supply chain and not only when supplied to a person with an illness or disability.

Question 2

Following on from the detailed reasoning in question 1 above we have not considered whether your importation of the accessories and spare parts in respect to the products is a non-taxable importation under Part 3-2 of the GST Act. Therefore, we have considered whether your importation of the accessories and spare parts in respect to the products is a non-taxable importation because if it had been a supply it would have been GST-free or input taxed.

There are no provisions of the GST Act that would make the supplies of the accessories and spare parts in respect to the products input taxed. There is only one provision that may make the supplies GST-free. That provision is section 38-45 of the GST Act.

Subsection 38-45(2) of the GST Act provides that a supply of a spare part for a product is GST-free if it is:

· supplied as a spare part for a product that is GST-free under section 38-45 of the GST Act, and

· specifically designed as a spare part for a product that is GST-free under section 38-45 of the GST Act.

Further Item 106 in Schedule 3 of the GST Act includes accessories associated with the products. You have advised the accessories and spare parts can not be used for any other appliance other than the products. Therefore, the accessories and spare parts in respect to the products meet the requirements of subsection 38-45(2) of the GST Act in that they are:

· covered by Item 106 in Schedule 3 of the GST Act

· supplied as a spare part for the products that are GST-free, as earlier advised, and

· specifically designed as a spare part for the products that are GST-free, as earlier advised

As such, the supply of the accessories and spare parts in respect to the products would be a GST-free supply under subsection 38-45(2) of the GST Act if it were a supply.

Thus, the importation of the accessories and spare parts in respect to the products is a non taxable importation under section 13-10 of the GST Act because a supply of the accessories and spare parts in respect to the products would be a GST-free supply.