30 March 2001 GST/HST Ruling 33775 - Rebate for Printed Books

Dear XXXXX

Thank you for your letter of November 14, 2000, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transaction(s) described below. We regret the delay in our reply.

Statement of Facts

It is our understanding that the XXXXX Council XXXXX operates a resource library that is open to the public. The library contains books, films, and recordings, and all of these materials are available for borrowing by the public.

We have confirmed from our records that the Council is a registered charity for Income Tax purposes, and so on that basis meets the definition of "charity" for GST/HST purposes.

Ruling Requested

Is the Council eligible for the rebate for printed books and audio recordings of printed books, pursuant to section 259.1 of the Excise Tax Act?

Ruling Given

Based on the facts set out above, we rule that the Council is eligible for the rebate for printed books and audio recordings of printed books, pursuant to section 259.1 of the Excise Tax Act.

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 subsection 259.1(2) of the Excise Tax Act, a "specified person" is eligible for a rebate of the GST paid or payable on the acquisition or importation, otherwise than for the purpose of sale, of property that is "(a) a printed book, ... (b) an audio recording all or substantially all of which is a spoken reading of a printed book, or (c) a ... printed version of scripture of any religion."

A "specified person" in this connection includes a charity that operates a "public lending library." You have included a submission pertaining to your level of government funding. While such information may be relative in determining whether a non-profit organization is a specified person, it is not relative with respect to charities. That is, as a charity, the Council qualifies as a specified person solely on the basis of operating a public lending library, regardless of its level of government funding.

Under our policy, a "public lending library" means (as cited from other rulings):

... any 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).

On the basis that the Council is a specified person, it is entitled to a rebate with respect to the GST/HST incurred on the purchase of printed books and audio recordings of the same.

For your further assistance, we are enclosing a copy of our technical information bulletin covering this topic. Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-7936.

Yours truly,

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

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