4 July 2000 GST/HST Ruling 30543 - Rebate for Printed Books

Dear XXXXX:

This letter is in response to the query of January 18, 2000, from XXXXX, formerly of your organization, wherein he requested that the XXXXX (the XXXXX ) be considered a "specified person" as defined in subsection 259.1(1) of the Excise Tax Act (ETA), for purposes of claiming a 100% rebate of the Goods and Services Tax (GST) paid on printed books and other related items.

The following documents were submitted for our consideration: a copy of the XXXXX's incorporation documents, a list of the current board of directors and officers, a copy of the mission statement (as well as the program mission statement), and the audited financial statements for the year ending March 31, 1999.

Statement of Facts

Our understanding of the facts is as follows:

1. The XXXXX is a registered charity for purposes of the Income Tax Act (ITA) and is therefore a charity for GST purposes.

2. One of the stated objects of the XXXXX is:

a) to receive and maintain a fund or funds and other property and to apply from time to time all or part thereof and the income therefrom for charitable purposes including, without limiting the generality of the foregoing, the following objects:

(i) XXXXX[;]

(ii) XXXXX[;]

(iii) XXXXX[;]

(iv) to provide the media with accurate information XXXXX;

(v) to seek and provide funding for XXXXX, public education and support services and to present information to the general public and various levels of government about the need for financial support for such projects.

3. The XXXXX operates a research and lending library where books are available for reference or loan to the general public.

4. The XXXXX acquires and imports, otherwise than for resale, printed books and audio recordings, all or substantially all of which are spoken readings of printed books.

Ruling Requested

The XXXXX is a "specified person" as defined in subsection 259.1(1) of the ETA, and thus eligible to claim a rebate of 100% of the GST paid on the acquisition of printed books and other related goods.

Ruling Given

Based on the facts set out above, we rule that the XXXXX is a specified person for purposes of subsection 259.1(1) of the ETA. Therefore, it is able to claim a rebate of 100% of the GST paid on the acquisition of printed books and other related goods.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to our interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Explanation

Pursuant to section 259.1 of the ETA, a charity that operates a public lending library is considered to be a "specified person" and is eligible to claim a rebate of 100% of the GST paid on printed books and other related goods that are acquired by the charity otherwise than for resale.

For purposes of the rebate, a "charity" has the meaning assigned to it under subsection 123(1) of the ETA, i.e.; a registered charity or a registered Canadian amateur athletic association within the meaning of subsection 248(1) of the Income Tax Act, but not including a "public institution". A public institution means a registered charity within the meaning of subsection 248(1) of the Income Tax Act that is a school authority, public college, university, hospital authority or a local authority determined by Revenue Canada to be a municipality.

It is our position that a public lending library, for purposes of the rebate, means a place where a collection of documents and other items such as films and recordings are kept and maintained and which is open to the public for their use. It includes libraries from which these documents and other items can be borrowed, as well as those libraries accessible to the public where the documents may be viewed "on site" only (e.g. for research purposes).

The XXXXX meets the definition of "specified person" in subsection 259.1(1) of the ETA, as it is a charity, and it operates a public lending library. We have enclosed for your consideration, a copy of Technical Interpretation Bulletin B-076, entitled "Proposed Rebate for Printed Books, Audio Recording of Printed Books, and Printed Versions Of Religious Scriptures Under the GST/HST." This Bulletin provides more information on the rebate, including the mechanism for claiming the rebate. Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-4206.

Yours truly,

Dwayne Moore
Charities, NPOs, and Educational Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate