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Edited version of your private ruling
Authorisation Number: 1012455302659
Ruling
Subject: Medical aids and appliances
Question
Is the importation of the shower a non-taxable importation?
Decision
Yes, the importation of the shower is a non-taxable importation.
Relevant facts and circumstances
You are carrying on an enterprise as a Customs broker and are registered for the goods and services tax (GST).
You are the Customs broker in the importation of a custom made shower from overseas.
You informed us that the shower is specifically designed for the use of a disabled person and it is not meant for use by people without such disability.
You also informed us that the shower is customised with modifications for the personal hygiene of people with disabilities and, you are of the view that these are listed in Schedule 3 to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) (Schedule 3), in particular, items 113 and 114 in this schedule.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 (GST Act) - Section 13-10
A New Tax System (Goods and Services Tax) Act 1999 (GST Act) - Section 38-45
Reasons for decision
Subsection 13-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states:
You make a taxable importation if:
a) goods are imported; and
b) 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.
(Asterisked item is defined in section 195-1 of the GST Act)
Section 13-10 of the GST Act provides the meaning of non-taxable importation. Paragraph 13-10(b) of the GST Act states:
An importation is a non-taxable importation if it would have been a supply that was *GST-free or *input taxed if it had been a supply.
The provisions of Division 40 of the GST Act, which is about input taxed supplies, do not apply to supplies of medical aids and appliances. It therefore remains to determine whether the importation of the shower is GST-free under the provisions of Division 38 of the GST Act.
Subsection 38-45(1) of the GST Act, states that the supply of certain medical aids and appliances is GST-free. It states:
A supply is GST-free if:
a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and
b) the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.
The facts provided by you state that the shower is specifically designed for people with an illness or disability and would not be widely used by people without an illness or disability. Therefore, we consider that paragraph 38-45(1)(b) of the GST Act is satisfied.
You further informed us that the shower is customised with modifications for the personal hygiene of people with disabilities and includes some accessories referred to as aids and appliances and listed in Schedule 3 to the GST Act. Item 18 in Schedule 3 of the A New Tax System (Goods and Services Tax) Regulations 1999 (Regulations) lists "customised modifications and accessories for the aids or appliances mentioned in items 111 to 212 of Schedule 3 to the GST Act". This item comes under the general category "Personal hygiene for people with disabilities". As the shower falls under this classification, we consider paragraph 38-45(1)(a) of the GST Act is also satisfied.
Accordingly, the supply of the shower would be a supply that is GST-free if it is supplied in Australia. As such, paragraph 13-10(b) of the GST Act is satisfied.
Therefore, the importation of the custom made shower is a non-taxable importation.