| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1013139689756
Date of advice: 16 December 2016
Subject: Vision Occlusion devices
Question 1
Are the Vision Occlusion devices (eye patches) a GST-free medical aid or appliance?
Answer
No, the Vision Occlusion devices are not a GST-free medical aid or appliance.
Relevant facts and circumstances
You are a small home based business and are registered for goods and services tax (GST).
You sell vision occlusion devices; commonly referred to as an XXX.
These single use XXX are Vision Occlusion devices positioned over the dominant eye to strengthen the weak eye.
These are medical devices as defined by the Therapeutic Goods Association and sold only for intended use in vision occlusion therapy conducted under high level medical supervision from a specialist eye doctor.
Your business sources the Vision Occlusion devices directly from overseas based manufacturers and are sold to Australian consumers.
Relevant legislative provisions
A New Tax System (Goods and services tax) Act 1999 s38-45.
Reasons for decision
Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), 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); and
● is specifically designed for people with an illness or disability; and
● is not widely used by people without an illness or disability.
Vision Occlusion devices are not listed in Schedule 3 nor are they specified in the GST Regulations.
Additionally, none of the Items in Schedule 3 under the Category of Vision could be said to encompass Vision Occlusion devices within their ordinary meaning.
Therefore, as you are registered for GST, if the supply meets the other positive limbs of the GST Act, you will be making a taxable supply when you supply the Vision Occlusion devices.