Licensee royalty payments affected by HST/GST
Effective July 1, Ontario and British Columbia will be introducing Harmonized Sales Tax (HST) and Nova Scotia will be increasing its current HST rate.
Access Copyright continues to be required to collect HST/GST on copyright royalty payments.
During the transition periods in Ontario, British Columbia and Nova Scotia, copyright royalty payments will be taxed as follows:
*HST in Nova Scotia
*HST in Nova Scotia
The remaining provinces and territories continue to be taxed at their current rates:
For licensees primarily located in a single province, you will be taxed at that province’s rates. For licensees with multiple locations across Canada, you will be taxed in accordance with the Place of Supply rules.
For more information on these issues, please consult with your accounting department, contact your Access Copyright Licensing Associate, or visit the government of Ontario website at www.ontario.ca.
Effective July 1, Ontario and British Columbia will be introducing Harmonized Sales Tax (HST) and Nova Scotia will be increasing its current HST rate.
Applicable Tax Rates | ||
| Before July 1 |
On or After July 1 | |
| Ontario |
GST - 5% | HST - 13% |
| British Columbia | GST - 5% | HST - 12% |
| Nova Scotia | HST - 13% | HST - 15% |
Access Copyright continues to be required to collect HST/GST on copyright royalty payments.
During the transition periods in Ontario, British Columbia and Nova Scotia, copyright royalty payments will be taxed as follows:
| Annual Licensing Fee: the invoice date is crucial. If the date of the invoice is before July 1, 2010, GST* applies. If the date of the invoice is on or after July 1, 2010, HST applies. |
Course packs are not exempt as books from GST/HST because royalties payable to Access Copyright are for the licence to copy from copyright-protected works (intangible personal property), and not for the physical course pack.
| Coursepack reporting: taxes will be pro-rated. If the period reported in the eLog submission is before July 1, 2010, GST* applies. If the period reported in the eLog submission is on or after July 1, 2010, HST applies. If the period reported in the eLog submission straddles July 1, 2010, then GST* applies to the period before July 1, and HST applies to the period on or after July 1, on a pro-rated basis. |
The remaining provinces and territories continue to be taxed at their current rates:
| Province/Territory | GST | HST |
| Alberta, Manitoba, Northwest Territories, Nunavut, Prince Edward Island, Saskatchewan, Yukon | 5% | |
| New Brunswick, Newfoundland & Labrador |
13% |
For licensees primarily located in a single province, you will be taxed at that province’s rates. For licensees with multiple locations across Canada, you will be taxed in accordance with the Place of Supply rules.
For more information on these issues, please consult with your accounting department, contact your Access Copyright Licensing Associate, or visit the government of Ontario website at www.ontario.ca.