11 October 2002 GST/HST Ruling 38995 - Eligibility for a Rebate on Printed Books Under Section 259.1 of the ETA

Dear XXXXX

Thank you for your letter of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to your purchases of printed books, audio recordings of printed books and printed versions of religious scriptures. We apologize for the delay in responding to your request.

Statement of Facts

According to your letter and our telephone conversations, our understanding of the facts is as follows:

The XXXXX (the "School") operates an elementary and secondary school. The courses being taught at the school meet the standards of educational instruction established by the Ministry of Education in the Province of XXXXX XXXXX.

The library is located in the school and has a collection of books that may be borrowed by students and parents. A librarian is employed by the school to maintain the library. It is not open to the general public.

Ruling Requested

Is the School eligible for a rebate of 100% of the GST paid on printed materials, audio recordings and printed versions of religious scriptures purchased for purposes other than sale?

Ruling Given

Based on the facts set out above, we rule that the School is a "specified person" for purposes of section 259.1 of the Excise Tax Act (ETA) and therefore eligible for the rebate of 100% of the GST payable on certain printed books, audio recordings of printed books and printed versions of religious scriptures purchased for purposes other than sale.

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

Section 259.1 of the ETA provides for a 100% rebate of the GST payable by a "specified person" in respect of the purchase of certain printed books and scripture that are acquired for purposes other than for sale. For the purposes of Part IX of the ETA, a sale includes any transfer of the ownership of the property such as a donation or a barter transaction.

A school authority is regarded as a "specified person" for purposes of the book rebate. A school authority as defined under subsection 123(1) of the ETA "means an organization that operates an elementary or secondary school in which it provides instruction that meets the standards of educational instruction established by the government of the province in which the school is operated". The School is recognized as a school authority and thereby regarded as a specified person for purposes of the book rebate.

The rebate provision for printed material, pursuant to subsection 259.1(2) of the ETA, is for the GST payable on the purchase of:

"... (a) a printed book or an update of such a book,

(b) an audio recording all or substantially all of which is a spoken reading of a printed book, or

(c) a bound or unbound printed version of scripture of any religion, ...".

A further explanation of the terms printed book, audio recording and scripture is contained in the enclosed GST/HST Memoranda 13.4, Rebates for Printed Books, Audio Recordings of Printed Books and Printed Versions of Religious Scriptures".

Enclosed is a copy of form GST 66(00), Application for GST/HST Public Service Bodies' Rebate and GST Self-Government Refund, which you may use to file for the rebate. Please note that the claim must be filed within four years after the end of the claim period in which the GST became payable.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 613-952-0420.

Yours truly,

Debra Murphy
Charities, Non-Profit Organizations and Educational Services Unit
Public Service Bodies and Government Division
Excise and GST/HST Rulings Directorate

Encl.