Can someone please tell me why a physiotherapist who is a contractor for a company has to pay GST on the income earned whereas a physiotherapist who has their own company does not need to pay GST on the income earned?
Thanks.
GST Question
jche6075 on 22/06/2017 - 08:33
Comments
I dont think so because physiotherapy is GST-free.
This is due to a very technical issue.
Under the GST Laws, medical type services supplied directly to treat patients are generally GST-free. However, a physio contracting to Physio company may need to charge GST (to the physio company) because they are not treating the patient. Why? because although they may be 'physically' treating the patient, they may not be 'legally' providing that treatment. GST Laws will look at the legal supply. Hence the physio is likely to be merely supplying their services to the company (which is the entity that is legally treating the patient).
So now you know what I meant when I said it comes down to a very technincal issue.
The difference will hinge on who or which entity is the one "treating the patient" LEGALLY. As with most cases if you are a contractor working for a physio company and I walk in as a patient, It would most likely be the case that I am being treated by the physio Centre (ie the company that owns and runs it) not by the contracting physio legally, even though the contracting physio may be carrying out the physical treatment but would only be doing so as he/she is providing his/her services to the physio company in treating that company's patients.
Now time to go and watch some mindless youtube videos to stop my head from hurting!!
Lol ok that kinda makes sense.
So if I have my own company and I am the sole director and I undertake all the treatments then is this GST free then?Thanks guys. That all kinda makes sense.
Is it possible that the company has to pay GST because the turnover is over $75k, so therefore the physiotherapist who works for the company has to charge GST too? Whereas when you work for yourself, your turnover maybe less than $75k.