ATO ID 2005/78: GST and supply of a Braille sign
Date of decision: 8 April 2004
Business line: Indirect Tax

Issue
Is the entity, a sign manufacturer and supplier, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a Braille sign which does not comprise any non-Braille component such as words or diagrams?

Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a Braille sign which does not comprise any non-Braille component such as words or diagrams.

Facts
The entity is a sign manufacturer and supplier. The entity manufactures and supplies a Braille sign. The signs are installed in public buildings and provide information for the visually impaired as to the location of various areas and amenities inside and outside of the building, including: toilets, parents' rooms, lifts, stairs, and access ramps. The sign does not comprise any non-Braille component such as words or diagrams for use by the sighted. The entity is registered for goods and services tax (GST) and there is no agreement between the entity and the recipient that the supply of the Braille sign will not be GST-free.

Reasons for decision
Summary: Under subsection 38-45(1) of the GST Act, the supply of a medical aid or appliance is GST-free where the medical aid or appliance: Item 151 in the table in Schedule 3 (Item 151) lists 'auditory/tactile alerting devices'. The phrase 'auditory/tactile alerting devices' is not defined in the GST Act. Accordingly, it is appropriate to examine the ordinary meaning of that phrase. The Macquarie Dictionary (1997), 3rd edn, The Macquarie Library Pty Ltd, New South Wales defines 'auditory' to mean 'relating to hearing, or the sense of hearing ...', 'tactile' to mean '1. of or relating to the organs of sense or touch. 2. perceptible to the touch...'; and 'alert' to mean '...4. an alarm or warning..' Accordingly, an auditory/tactile alerting device is a device which is designed to alert a visually impaired person to a presence, occurrence or danger through the person's sense of touch or hearing. The Braille sign constructed and supplied by the entity uses Braille to relay information to the visually impaired through their sense of touch. The sign is installed in public buildings and provides information for the visually impaired as to the location of various areas and amenities inside and outside of the building, including: toilets, parents' rooms, lifts, stairs, and access ramps. Therefore, the Braille sign is an auditory/tactile alerting device and is covered by Item 151. The Braille sign is designed specifically for the purpose of communicating information to the visually impaired and is only used by people able to read Braille. It does not comprise any non-Braille component for use by the sighted, such as words or diagrams, and therefore, is not widely used by people who are not visually impaired. As such, the supply of the Braille sign meets the requirements of subsection 38-45(1) of the GST Act and is GST-free.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3 Schedule 3 table item 151
Related ATO interpretative decisions: ATO ID 2005/79 | ATO ID 2005/80 | ATO ID 2002/230
Other references: The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales
Subject references: Goods and services tax GST free GST health GST supplies & acquisitions Section 38-45 - medical aids & appliances