News and Insights

Quebec TVQ 198.1-1/R1, “Printed Books”

Tax Development Apr 01, 2011

Please note that on September 30, 2011, Revenu Québec announced that the changes set out in TVQ.198.1-1/R1 had been superceded to reflect the announcement made on July 6, 2011 by the Ministere des Finances of the broadening of the zero-rating measure for printed books.

Tax Development re: TVQ.198.1-1/R2

Revenu Québec released revisions to its interpretation bulletin regarding printed books.  Generally, books that meet the common definition of a printed book, as set out in the bulletin, and are also identified by the International Standard Book Number (“ISBN”) are zero-rated for QST purposes.  In this bulletin, several key changes and clarifications were made regarding the taxable status of certain books.   

One of these changes related to agendas sold in Quebec.  Previously, agendas were taxable for QST purposes; however, these documents (as well as activity books) are now considered to be zero-rated if they meet the definition of a printed book and are identified by an ISBN.  Activity books include books of sudoku puzzles, word searches and crosswords.   

Also, further clarification was made on the taxable status of printed books that are packaged together with another product for a single price.  For example, a printed book that is sold with a CD-ROM, massage stones, cups, tasting spoons, tarot cards, crayons, a cocktail shaker, or a cooking thermometer, for a single price, is subject to QST.  On the other hand, printed books sold with an item that is negligible in value for a single price, are zero-rated.  Examples include printed books sold with a few stickers.   

In addition, printed books that are sold with the right to access a secure website containing related material are taxable for QST purposes.  This website must be accessible only to the reader, such as by login name and password.  If this website is publicly available, the sale of the book remains zero-rated.     

RQ TVQ 198.1-1/R1