GST Rebate for Printed Books
Public service bodies (PSBs) can claim a 100% rebate of the GST paid on the purchase of:
- printed books (and their updates)
- audio recordings of printed books
- printed versions of religious scriptures
However, the works must not be intended for resale and they were not acquired for the purpose of having their ownership transferred to another person as part of the sale of other property or of a service.
To receive the rebate, the PSB must be one of the following:
- a municipality
- a school authority
- a university or public college
- a charity, public institution or qualifying non-profit organization (NPO) that runs a public lending library
A university intends to provide course manuals as part of a course. Students who pass the course get credits towards a diploma. The manuals are mandatory and students cannot purchase them elsewhere. In this situation, the university is making a one-time tax-exempt sale of a service. Because the university acquires the manuals with the intention of transferring their ownership to the students as part of the sale of a service, it cannot claim the GST it paid on the printed books. It can, however, claim a 67% rebate for public service bodies on the GST paid or payable on the manuals it purchased.
Charities and qualifying NPOs whose primary purpose (more than 50%) is to promote literacy also qualify for the rebate, provided they apply to the Canada Revenue Agency to be prescribed under regulation. They also qualify if they purchase the above works for the purpose of donating them.
To claim the rebate, complete form FP-2066-V, GST/HST and QST Public Service Bodies' Rebate Application. The rebate application must be filed within four years following the end of the reporting period during which the GST became payable. To learn more about filing an application, click Rebate Applications.
There is no such rebate under the QST system because printed books are zero-rated for QST purposes.