Rebate for printed books and
Simplified accounting methods

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• Rebate for printed books

Also on this page ...

• Simplified accounting methods
  • Special Quick Method for qualifying non-profit organizations
    • The Special Quick Method remittance rates
    • How to apply for the Special Quick Method
  • Quick Method for other non-profit organizations
    • Credit of 1%
    • How to apply for the Quick Method

Rebate for printed books

You may qualify for the 100% rebate of GST and the federal part of HST (6% on or after July 1, 2006, before July 2006 at 7%) paid on printed books, audio recordings of printed books, and printed versions of religious scriptures if you meet all the following conditions:

• You are a qualifying non-profit organization.
• You operate a public lending library.
• The printed books, audio recordings of printed books, and printed versions of religious scriptures are not bought for resale.

In addition, qualifying non-profit organizations whose primary purpose is to promote literacy are eligible for this rebate if they meet certain requirements. Contact us for more information.

You claim this rebate on line 307 of Part E of your PSB rebate application. For more information, see our guide RC4034,GST/HST Public Service Bodies' Rebate or GST/HST Memoranda Series, Chapter 13.4, Rebates for Printed Books, Audio Recordings of Printed Books, and Printed Versions of Religious Scriptures.

If you claim an amount under the 100% rebate for printed books, you cannot claim the same amount under another rebate (such as the public service bodies' rebate).

A provincial point-of-sale rebate is also available for the 8% provincial part of HST on the above-mentioned publications bought in a participating province. This means that the person selling the books should give you the rebate at the time of the sale.

Simplified accounting methods

This section applies only to non-profit organizations that are also GST/HST registrants.

Special Quick Method for qualifying non-profit organizations

As a GST/HST registrant, you have to keep track of the GST/HST payable on your business purchases and the GST/HST you charge on taxable supplies in order to complete your GST/HST return.

To help reduce your paperwork and bookkeeping costs, you can use the Special Quick Method for public service bodies if you are a qualifying non-profit organization (the percentage of government funding you receive for the fiscal year or the previous two fiscal years is at least 40% of your total revenue). Otherwise, you may be entitled to use the Quick Method of accounting available to other businesses.

The Special Quick Method is a simple way to calculate the net tax you have to remit. This method has been developed for registered public service bodies (PSB), including non-profit organizations that are eligible to claim the PSB rebate. With the Special Quick Method, you do not have to keep track of the end use of your purchases. In other words, you do not have to calculate which purchases are for commercial activities and which are for exempt activities.

When you use the Special Quick Method, you collect GST/HST in the usual way on all taxable supplies, but remit only a reduced percentage. You do not claim ITCs on most of your purchases and expenses since you keep part of the tax you collect on your supplies. The remittance rates vary depending on whether the sales were made in a participating province or a non-participating province and where you are located.

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The Special Quick Method remittance rates

The remittance rates for qualifying non-profit organizations using the Special Quick Method are the following:

Special Quick Method rates on or after July 1, 2006:

• 9.4% for supplies made in a participating province through a permanent establishment in a participating province;
• 4.3% for supplies made in a non-participating province through a permanent establishment in a non-participating province;
• 2.5% for supplies made in a non-participating province through a permanent establishment in a participating province; and
• 11% for supplies made in a participating province through a permanent establishment in a non-participating province.

• 10% for supplies made in a participating province through a permanent establishment in a participating province;
• 5% for supplies made in a non-participating province through a permanent establishment in a non-participating province;
• 3.2% for supplies made in a non-participating province through a permanent establishment in a participating province; and
• 11.6% for supplies made in a participating province through a permanent establishment in a non-participating province.

You can claim ITCs on certain items only. For more information, see our booklet RC4247, The Special Quick Method of Accounting for Public Service Bodies.

How to apply for the Special Quick Method

You can use the Special Quick Method whether you file GST/HST returns monthly, quarterly, or annually. Call us, or complete Form GST287, Election or Revocation of the Election by Public Service Bodies to Use the Special Quick Method of Accounting, and return it to us.

You can make this election at the start of any reporting period. Once you decide to use the Special Quick Method, you have to use it for at least one year. You can keep using it as long as you remain eligible (i.e., you meet the 40% government funding test). For more information on the Special Quick Method, see our booklet RC4247, The Special Quick Method of Accounting for Public Service Bodies.

Quick Method for other non-profit organizations

If your non-profit organization does not receive at least 40% of its revenues from government funding, you cannot use the Special Quick Method for public service bodies. However, you may be entitled to use the Quick Method of accounting.

The Quick Method of accounting is a simple way for you to calculate the amount of GST/HST you have to remit. If your annual worldwide taxable supplies (including zero-rated supplies) and those of your associates are $200,000 or less (including GST/HST) in any four consecutive fiscal quarters over the last five fiscal quarters, you can use the Quick Method. The $200,000 limit does not include supplies of financial services, sales of real property, sales of capital assets, and goodwill.

Note
If you decide to use the Quick Method, you have to use it for at least one year.

With the Quick Method, you charge and collect GST or HST on taxable supplies in the usual way. To calculate the net GST/HST to remit, you multiply your taxable supplies including GST and your taxable supplies including HST made during the reporting period by the Quick Method remittance rates that apply to those supplies. There are several remittance rates. For information on determining which rate or rates apply to your supplies, see our booklet RC4058, Quick Method of Accounting for GST/HST.

Note
When applying the Quick Method remittance rate, the amount of the supply must include the GST/HST collected or collectible, but not the provincial sales tax if it was applicable.

The Quick Method remittance rates apply only to supplies you make in the usual course of business, on which you must collect GST or HST.

For supplies you make outside the usual course of business, such as real estate sales or sales of used capital goods eligible for a capital cost allowance for income tax purposes, you have to include the GST/HST charged in your net tax calculation rather than using the Quick Method remittance rate. Do not include proceeds from selling your business assets in the sales figure you use for your Quick Method calculation.

When you use the Quick Method, you cannot claim ITCs on your day-to-day operating expenses and inventory purchases. However, you can claim ITCs for purchases of land and purchases of goods that are eligible for capital cost allowance under the Income Tax Act. This includes buildings, computers, vehicles, other large equipment, and machinery. You can claim these credits when you complete your GST/HST return. In addition, if you sell capital assets, you have to remit the full GST or HST, not the Quick Method percentage.

Credit of 1%

You are also entitled to a 1% credit on the first $30,000 (including GST/HST) of your annual supplies on which you must collect GST or HST. To qualify for the 1% credit, you have to use the Quick Method at the beginning of your fiscal year, or if you are a new GST/HST registrant, on the day you became a registrant.

How to apply for the Quick Method

If you want to use the Quick Method, call us or complete Form GST74, Election and Revocation of an Election to Use the Quick Method of Accounting, and return it to us. You can find this form and more information on the Quick Method, in our booklet RC4058, Quick Method of Accounting for GST/HST.

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