Amendments to the Printed Book Rebate – Questions and Answers

GST/HST Notices - Notice 309
January 2019

The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the Act or relevant regulation, or call GST/HST Rulings at 1-800-959-8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service explains how to obtain a ruling or an interpretation and lists the GST/HST rulings centres.

If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1-800-567-4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.

For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call 1-855-666-5166.

GST/HST rates

Reference in this publication is made to supplies that are subject to the GST or the HST. The HST applies in the participating provinces at the following rates: 13% in Ontario and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%. If you are uncertain as to whether a supply is made in a participating province, see GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.

Printed book rebate

1. What is the printed book rebate?

Certain public service bodies can claim a 100% rebate of the GST or the federal part of the HST payable on the acquisition or importation of printed books and other specified property.

Currently, the printed book rebate is generally not available if the specified property was acquired or imported to be sold or given away. However, charities and qualifying non-profit organizations whose primary purpose is the promotion of literacy and that are prescribed by regulation (prescribed charity and prescribed qualifying non-profit organization) can claim a printed book rebate if the specified property was acquired or imported to be given away for free.

2. Who can claim the printed book rebate?

A specified person can claim the printed book rebate. For the purpose of the printed book rebate, specified person means:

• a municipality;
• a university;
• a public college;
• a school authority;
• a charity, public institution or qualifying non-profit organization that operates a public lending library; or
• a prescribed charity or a prescribed qualifying non-profit organization.
• Definitions of these terms are in Guide RC4034, GST/HST Public Service Bodies’ Rebate.

3. What property is eligible for the printed book rebate?

A specified person can claim a printed book rebate of the GST or the federal part of the HST payable on specified property, which means

• a printed book or an update of such a book;
• an audio recording all or substantially all of which is a spoken reading of a printed book; or
• a bound or unbound printed version of scripture of any religion.

For this rebate, printed books do not include certain items such as the following:

• newspapers;
• magazines and periodicals that are not purchased by subscription or that have more than 5% of their printed space devoted to advertising;
• books designed primarily for writing or drawing on;
• brochures or pamphlets;
• agendas and calendars;
• certain directories; and
• rate books (for example, insurance rate books).

4. How does a charity or qualifying non-profit organization become prescribed by regulation for the purpose of the printed book rebate?

A charity or a qualifying non-profit organization, whose primary purpose is the promotion of literacy, is eligible to claim the printed book rebate if it is prescribed under the Federal Book Rebate (GST/HST) Regulations.

To become prescribed by regulation, send your request – including the name of the organization, its governing documents, and a statement of its purposes and activities – to the following address:

Director
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
11th floor,
320 Queen Street, Tower A,
Ottawa ON  K1A 0L5

We will pass our recommendation on to the Department of Finance Canada, which will make the final determination.

5. Where can I find more information on the printed book rebate?

For more information on the printed book rebate, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate, and GST/HST Memorandum 13-4, Rebates for Printed Books, Audio Recordings of Printed Books, and Printed Versions of Religious Scriptures.

Amendments

6. What do the amendments change?

The amendments clarify that a specified person is generally ineligible for a printed book rebate where:

• the specified person has acquired or imported the specified property for the purpose of supply by way of sale; or
• the specified person has acquired or imported the specified property for the purpose of transferring ownership of the specified property as part of a single supply of another property or service.

For more information on single and multiple supplies, please see GST/HST Policy Statement P-077R2, Single and Multiple Supplies.

7. How do the amendments affect prescribed charities and prescribed qualifying non-profit organizations?

A prescribed charity or a prescribed qualifying non-profit organization cannot claim a printed book rebate if the specified property was acquired or imported for the purpose of making a supply by way of sale of the specified property for consideration. However, a prescribed charity or a prescribed qualifying non-profit organization can claim a printed book rebate if the specified property was acquired or imported to be given away for free.

Pursuant to the amendments, a prescribed charity or a prescribed qualifying non-profit organization is also ineligible for a printed book rebate if it intends to transfer ownership of the specified property in the course of supplying another property or a service for consideration.

8. How do the amendments affect other specified persons?

Other specified persons (that is, municipalities, school authorities, universities, public colleges, and charities, public institutions or qualifying non-profit organizations that operate a public lending library) cannot claim a printed book rebate if the specified property was acquired or imported to be sold or given away.

Pursuant to the amendments, such a specified person is also ineligible for a printed book rebate if the person intends to transfer ownership of the specified property in the course of supplying another property or a service.

9. When do the amendments come into effect?

The amendments apply where GST/HST became payable after July 27, 2018, without having been paid on or before that day.

10. Do the amendments impact the point-of-sale rebate available in the participating provinces for the provincial part of the HST paid or payable on purchases of printed books and other qualifying items?

No, the amendments do not impact the provincial point-of-sale rebates.

Further information