TAXATION RULING NO. ST 2430

ST 2430

SALES TAX : PVC SQUARE TUBING AND FITTINGS

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FOI status:

May be releasedFOI number: I 1103510

PREAMBLE

This Ruling considers the sales tax classification of square tubing and fittings made of poly-vinyl chloride (PVC).

2. Subitem 82A(1) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act exempts piping or tubing of a kind used exclusively, or primarily and principally, in the construction or repair of, and wrought into or attached to so as to form part of buildings, fixtures, structures or other works.

3. Subitem 82A(2) exempts fittings for goods covered by subitem 82A(1).

4. Subitem 1(a), Third Schedule, taxes at 10% furniture of a kind ordinarily used for household purposes.

FACTS

5. There is available on the market a range of PVC square tubing and fittings that are sold through hardware stores to the home handyman. The tubing is sold in lengths of one or two metres.

6. The PVC tubing is used as the framework for household furniture such as coffee tables, children's chairs, shelving and storage boxes. It may also be used to construct outdoor articles such as greenhouses and dog kennels. The lengths of tubing are joined by inserting the ends into specially designed PVC fittings. The tubing can be cut and drilled and panels screwed to the framework to complete the article being constructed.

RULING

7. Although the PVC tubing and fittings may be used in the construction of household furniture they are not sold as parts for furniture or for assembly into a particular piece of furniture. Accordingly they are not goods of a kind covered by subitem 1(a), Third Schedule.

8. Neither is PVC square tubing piping or tubing of the kind covered by subitem 82A(1), First Schedule. The PVC fittings for the tubing are accordingly not covered by subitem 82A(2).

9. PVC square tubing and fittings are taxable at the general rate of 20%.

COMMISSIONER OF TAXATION
30 JUNE 1988

References

ATO references:
NO 88/3432-6

Date of effect:
Immediate

Subject References:
PVC SQUARE TUBING AND FITTINGS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 82A, FIRST SCHEDULE
SUBITEM 1(a), THIRD SCHEDULE