MobileRead Forums - View Single Post - Full HST (up to 15%) being charged on E-Books in Canada (books are 5% GST only)

MelC · 07-22-2010, 10:49 AM

This is the response I received from Kobo. They clearly believe that HST is payable here but haven't pointed me to any specific sections supporting that analysis. I am trying the Ontario government next.

Holly, Jul 22 09:37 (EDT):
Hi Mel,
Thank you for contacting us with this issue:
Canadian residents are charged GST (Goods and Services Tax), and PST (Provincial Sales Tax) or HST (Harmonized Sales Tax) on their eBook purchases at checkout, depending on their province of residence. The taxation total is included below the subtotal for your book on the purchase page. This applies to on-line purchases and unfortunately, the book exemption for HST applies only to print books and not eBooks.
Sincerely,
The Kobo Team

Mel C., Jul 21 14:27 (EDT):
I note for my purchases after July 1, 2010 that you are charging the full
HST. I would appreciate understanding your basis for doing so as my copy of
the ontario guidelines on HST indicated that audiobooks were actually being
reduced to 5%. Under what category are your classifying the electronic
books if not under audiobooks which are also electronic files? Please point
me to the statutory reference as well for my edification.
http://www.rev.gov.on.ca/en/taxchange/pdf/taxable.pdf
see page 4.
Regards,
Mel C.

07-22-2010, 10:49 AM	#8
MelC Evangelist Posts: 410 Karma: 2081 Join Date: Feb 2009 Location: Toronto, Canada Device: Cybook Gen3, PRS600	This is the response I received from Kobo. They clearly believe that HST is payable here but haven't pointed me to any specific sections supporting that analysis. I am trying the Ontario government next. Holly, Jul 22 09:37 (EDT): Hi Mel, Thank you for contacting us with this issue: Canadian residents are charged GST (Goods and Services Tax), and PST (Provincial Sales Tax) or HST (Harmonized Sales Tax) on their eBook purchases at checkout, depending on their province of residence. The taxation total is included below the subtotal for your book on the purchase page. This applies to on-line purchases and unfortunately, the book exemption for HST applies only to print books and not eBooks. Sincerely, The Kobo Team Mel C., Jul 21 14:27 (EDT): I note for my purchases after July 1, 2010 that you are charging the full HST. I would appreciate understanding your basis for doing so as my copy of the ontario guidelines on HST indicated that audiobooks were actually being reduced to 5%. Under what category are your classifying the electronic books if not under audiobooks which are also electronic files? Please point me to the statutory reference as well for my edification. http://www.rev.gov.on.ca/en/taxchange/pdf/taxable.pdf see page 4. Regards, Mel C.