THE Australian Taxation Office (ATO) stated it may have created the impression that all general-purpose compression socks and travel socks are GST-free.
If pharmacists have treated general-purpose compression socks and travel socks as GST-free in good faith, the ATO won't devote compliance resources to reviewing the GST treatment of these products for tax periods up to and including 29 Feb 2024.
However, if your pharmacy has treated sports or athletic compression socks and maternity socks as GST-free, the ATO is encouraging pharmacists to make a voluntary disclosure, as these types of socks weren't covered in the ATO Interpretive Decision it withdrew recently.
GST will apply to compression socks when they're designed for or widely used by people to prevent illness or disability.
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