The tax on books in Quebec is 5% for a printed book with an ISBN, because Quebec zero-rates qualifying printed books under the Québec sales tax (QST) and only the federal Goods and Services Tax (GST) applies. Most other retail purchases in the province carry a combined 14.975%, so a qualifying book saves you nearly ten percentage points at the register. E-books, audiobooks, and a short list of printed items don’t get the break and are taxed at the full rate.
Why Printed Books Pay Only 5%
The federal government charges 5% GST on most goods sold in Canada, including printed books, under the Excise Tax Act. The retailer collects it at checkout and remits it to the Canada Revenue Agency. That 5% applies in every province and territory.
Quebec’s standard QST rate is 9.975%, but printed books are zero-rated under the Act respecting the Québec sales tax. The QST portion drops to 0% on qualifying books, which is why your receipt shows only the federal line.
What Qualifies as a Printed Book
Two things have to line up. The book needs an International Standard Book Number (ISBN), and it has to meet Revenu Québec’s practical test for a printed book: an assemblage of printed sheets, content made of characters intended to be read, with the sheets bound together between covers. The Act itself doesn’t define the term, so Revenu Québec applies that three-part test.1Revenu Québec. Printed Books
An ISBN alone isn’t enough, but several items you might not expect do qualify as long as they carry one:
- Activity books: coloring books, Sudoku, crosswords, word searches, mazes, connect-the-dot books
- Product catalogues
- Annual reports and financial statements
- Student yearbooks and admissions guides
- Books of sheet music
- Conference kits and brochures
Other items are excluded from the zero-rating even with an ISBN on the cover:
- Ruled notebooks
- Accounting books
- Downloaded text of conferences
- Newspapers
- Periodicals
- Software or electronic documents on CD-ROM
Anything on the excluded list is taxed at the full 14.975%. The dividing line is usually whether the pages are meant to be read or written in. A ruled notebook with an ISBN is still a notebook for tax purposes.
E-books and Audiobooks
Digital books and audiobooks don’t qualify. The zero-rating is tied to the physical format, so an e-book downloaded to a tablet or an audiobook streamed through a subscription service is a standard taxable supply: 5% GST plus 9.975% QST, totalling 14.975%. The content being identical to a zero-rated printed edition doesn’t change the result; the format does.
Books Ordered From Abroad
Printed books imported by mail valued above $20 are subject to the 5% GST, which the Canada Border Services Agency collects when the package arrives. Canada Post charges a handling fee on items that owe duty or tax, but if a book is both duty-free and tax-exempt, no handling fee applies.2Canada Border Services Agency. Importing by Mail
Quebec’s QST zero-rating still applies to an imported printed book with an ISBN, so you shouldn’t owe provincial tax on a qualifying import. Packages delivered through a courier instead of Canada Post are cleared by that courier, which may add a brokerage fee on top of any taxes owed.
When an Organization Can Recover the GST
Certain organizations can get the full 5% federal portion back through the public service bodies’ rebate. Line 307 of Form GST66 provides a 100% rebate of the GST paid on printed books for qualifying “specified persons,” which is a different figure from the general PSB rebate percentages.3Canada Revenue Agency. GST/HST Public Service Bodies’ Rebate
Eligible bodies include:
- Municipalities
- Universities and affiliated colleges or research bodies operated on a not-for-profit basis
- Public colleges operated on a not-for-profit basis
- School authorities operated on a not-for-profit basis
- Charities, public institutions, and qualifying non-profit organizations that operate a public lending library
- Prescribed charities and qualifying NPOs whose primary purpose is promoting literacy
The rebate covers printed books, updates to printed books, audio recordings of printed books, and printed versions of religious scriptures, provided they were bought for the organization’s own use and not for resale. The claim is made on Form GST66.4Canada Revenue Agency. GST66 Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund
The deadline is four years from the due date of the GST/HST return for the claim period in which the expense was incurred, or four years from the last day of the claim period if the organization isn’t a GST/HST registrant. Miss the window and the rebate is forfeited, so organizations buying books in volume should file on a regular cycle rather than letting receipts accumulate.3Canada Revenue Agency. GST/HST Public Service Bodies’ Rebate