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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012699607775

Ruling

Subject: Supply of goods and services to the dentistry profession

Question

Is the supply of the items listed in List -1 below taxable?

Answer

Yes, the supply of the items listed in List - 1 below is taxable.

Relevant facts and circumstances

    • You are a sole trader carrying on an enterprise in supplying medical aids and appliances.

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

    • You supply a range of products and services to the dentistry profession in the course of your enterprise.

    • Your supply of these products is for consideration and is made to your customers in Australia.

    • The products and services are listed in List - 1 below.

List - 1

    1. Mouth Guards

    2. Bite pivots

    3. Reline or rebasing of dentures

    4. Repair of broken dentures

    5. Occlusal splints

    6. Night guards

    7. Special or custom impression trays

    8. Surgical guides or surgical stents

    9. Jaw conditioning pivots

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 (GST Act) Section 9-5

A New Tax System (Goods and Services Tax) Act 1999 (GST Act) Section 38-45

Reasons for decision

Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states as follows:

You make a taxable supply if:

      (a) you make the supply for *consideration; and

      (b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and

      (c) the supply is *connected with Australia; and

      (d) you are *registered or *required to be registered.

    However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed.

(The definitions of asterisked terms are given in section 195-1 of the GST Act)

In this case, you are making supplies of goods and services relating to dentistry. You make these supplies for consideration in the course of an enterprise you are carrying on. The supplies are made to your customers in Australia and, you are registered for the GST. Therefore, the supplies you make satisfy the positive limbs of section 9-5 of the GST Act. For the supplies you make to be taxable, they must not be excluded as either input taxed or GST-free.

The supplies you make are not input taxed as they do not fall under any of the provisions in Division 40 of the GST Act (which is about input taxed supplies). Therefore it remains to be seen whether the supplies you make are GST-free under any of the provisions in Division 38 of the GST Act.

Subsection 38-45(1) of the GST Act provides that the supply of certain medical aids and appliances is GST-free where the medical aid or appliance:

    • 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)

    • is specifically designed for people with an illness or disability, and

    • is not widely used by people without an illness or disability.

All the above requirements must be satisfied for a medical aid or appliance to be GST-free.

The first requirement is that the medical aid or appliance must be listed in the table in Schedule 3 or the GST Regulations.

None of the items in List - 1 are listed in Schedule 3 to the GST Act or in the GST Regulations.

These products may be designed for people with an illness or disability and they may not be widely used by people without an illness or a disability. However as none of the items are listed in Schedule 3 to the GST Act or in the GST Regulations, the supply of these items will not be GST-free. Therefore, as the supply of the items satisfies all requirements of section 9-5 of the GST Act and are not excluded as input taxed or GST-free, their supply will be taxable.


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