Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 128988
May 24, 2011
Dear [Client]:
Subject:
GST/HST RULING
Point-of-sale rebate on printed books
Thank you for your letter of September 17, 2010, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) point-of-sale rebate on printed books (the Rebate) to [...] (the Product).
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
Our understanding of the facts is as follows:
1. The Product consists of [...] pages and cover pages which are bound by two staples.
2. Each page [...].
3. Some pages have pictures [...].
4. Each page contains one or more of: [...].
5. The front cover of the Product states: [...].
6. The back cover of the Product states: [...]
7. The inside of the front cover states: [...]
8. The [...] Web site states: [...]
Ruling Requested
You would like to know if the Product is a qualifying good for purposes of the Rebate.
Ruling Given
Based on the facts set out above, we rule that the Product is a qualifying good for purposes of the Rebate.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
The governments of Nova Scotia, Ontario, New Brunswick, and Newfoundland and Labrador British Columbia provide a point-of-sale rebate of the provincial component of the HST to all purchasers of printed books and other qualifying goods.
Per GST/HST Memorandum 13.4, Rebates for Printed Books, Audio Recording of Printed Books, and Printed Versions of Religious Scriptures, (Memo 13.4) which is available on the Canada Revenue Agency Web site, if an item falls within the definition of "printed book", it may be a qualifying good for purposes of the Rebate. If an item is excluded from the definition of "printed book" and if is not considered to be a printed version of a religious scripture or an audio recording of a printed book, it is not a qualifying good for purposes of the Rebate. The expression "printed book" has its ordinary meaning for purposes of the Rebate, subject to specific exclusions in subsection 259.1(1).
Under paragraph subsection 259.1(1)(g) "printed book" does not include anything that is or the main component of which is "a book designed primarily for writing on". "Primarily" is not defined in the ETA, however, the Canada Revenue Agency considers "primarily" to mean a proportion that is greater than 50%. Although parts of the Product are designed for writing on, the Product is not primarily for writing on. Consequently, for purposes of the Rebate the Product is not excluded by paragraph 259.1(1)(g). As none of the other exclusions under subsection 259.1(1) apply, the Product is a qualifying good for the purposes of the Rebate.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9585. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Ben Boboski
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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