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Old 07-20-2010, 11:35 PM   #1
baker
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Ontario HST on e-books

I have been buying e-books through Kobobooks via Indigo since I got my Kobo reader. Despite the Ontario government announcing that the 5% tax rate effective July 1 would continue to be applied on books....they in their wisdom decided that e-books are not books and that the 13% tax would apply, yet only5% on books and audiobooks. Effectively it's frequently cheaper to purchase the books with discounts and taxes. Given Indigo's power in the book industry in Canada it makes me wonder why neither Kobobooks or Indigo let customers know of the new tax on e-books........maybe its to their advantage somehow. Despite being an avid ebook purchaser the last few months the tax issue has taken away most of the lustre for me. The last 2 books I purchased were not e-books and in both cases were quite a bit cheaper than ebooks from Kobobooks/Indigo when you include taxes
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Old 07-21-2010, 03:39 AM   #2
mwlcarter
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As it happens, I blogged about this just today!

http://canadianpoliticalaction.blogs...n-reading.html

I also created a Facebook group about it:

http://www.facebook.com/group.php?gid=121534631226078
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Old 07-21-2010, 04:17 AM   #3
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Quote:
Originally Posted by baker View Post
I have been buying e-books through Kobobooks via Indigo since I got my Kobo reader. Despite the Ontario government announcing that the 5% tax rate effective July 1 would continue to be applied on books....they in their wisdom decided that e-books are not books and that the 13% tax would apply, yet only5% on books and audiobooks. Effectively it's frequently cheaper to purchase the books with discounts and taxes. Given Indigo's power in the book industry in Canada it makes me wonder why neither Kobobooks or Indigo let customers know of the new tax on e-books........maybe its to their advantage somehow. Despite being an avid ebook purchaser the last few months the tax issue has taken away most of the lustre for me. The last 2 books I purchased were not e-books and in both cases were quite a bit cheaper than ebooks from Kobobooks/Indigo when you include taxes
Eh! You wouldn't believe what could happen aside this little thing.
Last days almost all news on the net stress how on line bookstores
sell more ebooks than regular ones, on the paper. What to say
further?
At least, you were happy enough to get reader without any hassle.
Reason to sing and dance, isn't it?
Best regards.
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Old 07-21-2010, 09:48 AM   #4
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Quote:
Originally Posted by baker View Post
I have been buying e-books through Kobobooks via Indigo since I got my Kobo reader. Despite the Ontario government announcing that the 5% tax rate effective July 1 would continue to be applied on books....they in their wisdom decided that e-books are not books and that the 13% tax would apply, yet only5% on books and audiobooks. Effectively it's frequently cheaper to purchase the books with discounts and taxes. Given Indigo's power in the book industry in Canada it makes me wonder why neither Kobobooks or Indigo let customers know of the new tax on e-books........maybe its to their advantage somehow. Despite being an avid ebook purchaser the last few months the tax issue has taken away most of the lustre for me. The last 2 books I purchased were not e-books and in both cases were quite a bit cheaper than ebooks from Kobobooks/Indigo when you include taxes
It is an unfortunate situation. I too had been faithfully buying my ebooks from Kobo. Since the recent tax grab though, I've bought several ebooks from the Sony store of all places. Their prices tend to be lower to begin with...and the currency exchange rate is significantly lower than the 13% HST. Not sure how that's to Kobo's advantage. How an ebook cannot be considered a 'book' is beyond me. Gotta love our backward-thinking government.

Last edited by jimr; 07-21-2010 at 09:49 AM. Reason: fixed a couple typos
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Old 07-21-2010, 01:24 PM   #5
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Originally Posted by jimr View Post
It is an unfortunate situation. I too had been faithfully buying my ebooks from Kobo. Since the recent tax grab though, I've bought several ebooks from the Sony store of all places. Their prices tend to be lower to begin with...and the currency exchange rate is significantly lower than the 13% HST. Not sure how that's to Kobo's advantage. How an ebook cannot be considered a 'book' is beyond me. Gotta love our backward-thinking government.
"Thinking" government!! You are making a big presumption
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Old 07-21-2010, 07:54 PM   #6
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I believe the same lunacy rules in France: eBooks are taxed differently than "books". It would be nice to fix this thing in Canada. I am surprised Kobo / Chapters / Indigo / Heather haven't made a public statement about it.
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Old 07-21-2010, 09:24 PM   #7
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HST just got introduced in BC as well, I'll bet my future eBook purchases will reflect that when I go to the Kobo store
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Old 07-22-2010, 01:52 PM   #8
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Simple thought,

Raise hell with your member of Provincial Parliament.

Not enough people are complaining directly to government about the HST.
(Horribly Stupid Tax)
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Old 07-22-2010, 05:20 PM   #9
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Gotta love living in the Yukon.

No PST at all.
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