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Edited version of private advice
Authorisation Number: 1051880317007
Date of advice: 3 August 2021
Ruling
Subject: GST and contracted dental services
Question
Are you making a GST-free supply of your services that include dental services and repairs of dental goods under subsection 38-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
No, you are not making a GST-free supply of your services under subsection 38-10(1) of the GST Act.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are a registered dental practitioner. You are registered for GST.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-10(1)
Reasons for decision
To determine if your supply is GST-free or not it needs to be determined what supply/supplies you are making and to who.
Therefore, you are making a supply of services to the Practice. The Practice would be making a supply of dental services to the patient.
Under subsection 38-10(1) of the GST Act you make a GST-free supply of health services if:
• It is a service listed in the table in subsection 38-10(1) of the GST Act
• The provider of the service is a recognised professional in relation to that service listed in the table in subsection 38-10(1) of the GST Act, and
• 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.
'Dental' is listed at Item 6 in the table. You have stated that you are a registered dental practitioner that is registered under the relevant State laws prohibiting the supply of dental services without such registration.
However, the recipient of your supply is the Practice and not the patient. As such you are not supplying dental treatment to the patient you are supplying contracted services to the Practice. The Practice is supplying the services to the patient, albeit you are physically providing the service. As such, you are not making a GST-free supply of dental services to the Practice. As you are registered for GST and you are making the supply of your contracted services in the course of your enterprise as a dentist in Australia and you are receiving a fee for your service, your supply is a taxable supply under section 9-5 of the GST Act.
As you are making a taxable supply of contracted services to the Practice you are required to provide a tax invoice within 28 days of it being requested by the Practice. You are required to remit 1/11 of the total price of the supply of contracted services you provide to the Practice.