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Ontario Retail Sales Tax
Magazine Publications Exemption
There is an available exemption from paying the Ontario Retail Sales Tax (PST) when publishing and distributing certain publications.
If you have magazines printed for distribution, such as by using a mailing list, you may be able to claim an exemption from the PST on the publication and all costs associated in the production of the magazines.
The regulation defines magazines as bound printed publications issued annually or more frequently, containing articles or contributions by various authors. It also may contain pictures.
Therefore, and as per PST Guide #507, Magazines that qualify as exempt from the PST include those that are:
- Distributed with a newspaper
- Distributed free by "controlled" or "qualified" circulation*
- Distributed free to employees, shareholders etc.
- Issued free at theatres, cultural events, or sporting events
- Purchased by subscription
* "Controlled" or "qualified" means by mailing lists or via a specified audience such as those in a theatre or a specific area, and does not mean where the public can help themselves to a free magazine that is placed on a counter or newsstand, or handed out at a corner by hand where the distribution is not being controlled.
Magazines do not mean newspapers, newsletters or bulletins. Magazines sold at retail locations, such as stores, newsstands or flea markets etc. are not exempt and the tax must be applied and collected.
If your publication qualifies, as per the definition above, you must submit an exemption certificate to your suppliers and/or publisher when placing your order(s). Examples of exemption certificates can be found on the Procurement website as referenced below.
For more information please refer the website www.procurement.utoronto.ca and look under Policy. For a copy of the PST Guide #507 you can visit the Ontario government website at
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_3973_1.html
or use the fax service by calling 1-877-4-TAX-FAX (1-877-487-9329).
Ontario Retail Sales Tax Act Reference:
S.7(1)47; Regulation 1012 S1(1)
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