GST and sunscreen preparations with a sun protection factor (SPF) rating of 15 or more

Is the entity, a supplier of sunscreen preparations, making a GST-free supply under subsection 38-47(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it sells sunscreen preparations with a sun protection factor (SPF) rating of 15 or more?

Yes, the entity is making a GST-free supply under subsection 38-47(1) of the GST Act when it sells sunscreen preparations with a sun protection factor (SPF) rating of 15 or more.

The entity is a supplier of sunscreen preparations. The entity sells a number of different types of sunscreen preparations.

The products are for dermal application, that is, for use on a person's skin.

All of the products have an Australian Register of Therapeutic Goods Number. As such, the products are goods included in the Australian Register of Therapeutic Goods under the Therapeutic Goods Act 1989 .

Some of the products also contain insect repellent.

All of the products have an Australian Register of Therapeutic Goods Number. As such, the products are goods required to be registered or listed, or are goods in a class of goods required to be registered or listed under the Therapeutic Goods Regulations 1990.

There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply under subsection 38-47(2) of the GST Act.

The entity is registered for goods and services tax (GST).

Under subsection 38-47(1) of the GST Act a supply of health goods is GST-free if it is a supply of goods of a kind that the Health Minister, by determination in writing, declares to be goods the supply of which is GST-free.

For the purposes of subsection 38-47(1) of the GST Act the Health Minister has made the GST-free Supply (Health Goods) Determination 2005 (the Determination).

Pursuant to the Determination, sunscreen preparations for dermal application that: • are marketed principally for use as a sunscreen; • have a sunscreen protection factor rating of 15 or more; and are required to be included in the Australian Register of Therapeutic Goods, or are goods in a class of goods required to be included in the Australian Register of Therapeutic Goods under the Therapeutic Goods Act 1989 , may be GST-free under subsection 38-47(1) of the GST Act.

All of the products sold by the entity are for dermal application, are principally marketed for use as sunscreen, and have a SPF rating of 15 or more.

Additionally, all of the products have an Australian Register of Therapeutic Goods Number and as such are goods required to be included, or are goods in a class of goods required to be included under the Therapeutic Goods Act 1989 . Consequently, the supply of these products satisfies the requirements of the Determination.

Therefore, the entity is making a GST-free supply under subsection 38-47(1) of the GST Act when it supplies sunscreen preparations with a SPF of 15 or more. [Note: In this case, some of the products that contain insect repellent are marketed principally for use as a sunscreen preparation with insect repellent benefits rather than an insect repellent with sun protection benefits. If the products were marketed principally for use as an insect repellent the supply of the products would not be GST-free under subsection 38-47(1) of the GST Act.] [HISTORY: This ATO ID was amended on 6 June 2007. The amendment was made to update the reference to the current GST-free Supply (Health Goods) Determination. This amendment does not change the decision applied under the previous Determination.]