Private ruling: Vision Occlusion devices
Date of advice: 16 December 2016
Published: May 2017

Ruling: Q1: Are the Vision Occlusion devices (eye patches) a GST-free medical aid or appliance? | A1: 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: Summary: 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.