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Edited version of your written advice
Authorisation Number: 1013100819055
Ruling
Subject: Goods and services tax (GST) and mobility aid
Question 1
Are your sales of the mobility aid (aid) GST-free?
Answer
Yes.
The medical aid or appliance that is supplied GST-free under section 38-45 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) as it is
• covered by Schedule 3 to the GST Act, and
• it is specifically designed for people with illnesses or disabilities, and
• it would not be widely used by people without an illness or disability.
Question 2
Is the importation of the aid exempt from GST?
Answer
Yes.
The sale of the aid would be GST-free so it is a non-taxable importation under section 13-10 of the GST Act. (Importation GST exemption code B105 applies).
Relevant facts and circumstances
You are registered for goods and services tax (GST).
You are seeking to import and sell in Australia a mobility aid from overseas. This product is designed for people with disabilities. It allows them to be more mobile in varied outdoor conditions.
The aid is classed as a wheelchair as defined in legislation of the country in which the aid is made.
The aid is typically used by people with disabilities and not widely used by people without a disability.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Sections 9-5, 13-5, 13-10, 38-45 and 42-5.
A New Tax System (Goods and Services Tax) Act 1999 Item 105 of Schedule 3