Edited version of private ruling

Authorisation Number: 1011706725143

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Ruling

Subject: GST and supplies of therapeutic massage therapy

Question 1

Are your supplies of therapeutic massage therapy GST-free?

Answer

No, your supplies of therapeutic massage therapy are not GST-free.

Relevant facts and circumstances

· You are currently not registered for GST. However, you are considering becoming registered for GST.

· You are a member of an association related to your profession.

· You hold a qualification in massage therapy.

· You provide therapeutic massage services at your premises to patients referred by physiotherapists.

· You provide the services directly to your clients and are not providing your service through a physiotherapist.

Reasons for decision

Subsection 38-10(1) of the GST Act provides that a supply of other health services is GST-free if:

(a) it is a service of a kind specified in the table in subsection 38-10(1) of the GST Act or in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)

(b) the supplier is a recognised professional in relation to the supply of services of that kind, and

(c) the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the recipient of the supply.

All of the above requirements must be satisfied for the supply of your massage services to be GST-free.

To satisfy the requirement in paragraph 38-10(1)(a) of the GST Act, the services you supply must be specified in the table in subsection 38-10(1) (the table) of the GST Act or the GST Regulations. At this stage, no regulations have been made in relation to section 38-10 of the GST Act.

In your case, the service of massage therapy that you provide is not one of the 21 specified health services for the purpose of the GST Act. Therefore, a supply of massage therapy in its own right will not be GST-free.

However, a supply of massage therapy may be GST-free if:

· it is part of a health service that is specified in the table in section 38-10 of the GST Act

· it is supplied by a recognised professional in one of the listed complementary health services who is also trained in massage therapy

· the listed complementary health service profession considers the massage to be a standard technique or component treatment for that listed complementary health service, and

· the listed complementary health service profession accepts it as being necessary for the appropriate treatment of the recipient.

In your case, you provide therapeutic massage services to your clients who have been referred by physiotherapists (whose health services are specified in the table). Your supply is made directly to your clients at your business premises and is not made through the physiotherapist. The services are provided by you on referral from a physiotherapist and are not part of the physiotherapy treatment provided by the physiotherapist. You are making a separate supply to the supply from a physiotherapist.

As your supplies of massage therapy are not a health service specified under paragraph 38-10(1)(a) of the GST Act, nor are your supplies of massage therapy part of such a health service, the requirements of subsection 38-10(1) of the GST Act are not met. Consequently, your supplies of therapeutic massage therapy are not GST-free.

You advised that you are considering whether to become registered for GST. If you are registered or required to be registered then you will be liable for GST on taxable supplies that you make, including the massage therapy services.