Canada - HST - POS Rebate on books

[Bluenoser]

I have just spent an hour talking to different people at Canda Revenue Agency about GST / HST (sales taxes for Canada).

I sell books through PayPal, and I also use PayPal for other goods and services, too.

Book sales of traditional printed books in Canada are EXEMPT from HST, but we still need to charge GST. Here is the info on their website:

http://www.cra-arc.gc.ca/E/pub/gi/gi-065/gi-065-e.html

I have figured out how to set different tax rates for different provinces in PayPal. That part was easy.

What I cannot figure out is how to set different tax rates for different products in Paypal.

Right now, if a customer located in Ontario buys a book, they'll be charged the 13% HST, as per CRA rates listed here: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rts-eng.html

But, since printed books are exempt, the customer should only be charged the 5% GST, as there is a Point of Sale (POS) tax rebate on printed books sold in Canada.

This rebate does not apply to e-books; nor does it apply to most other goods and services. So, I still need to charge HST on e-books and other goods and other services provided to clients in different provinces.

I have posted the question to a number of discussion groups, but without much luck. Any advice?

[ramon1926]

Dear Bluenoser,

I am looking for that exact answer. How do I set up my taxes when some items have one tax while others have two. Books are a special category but I cannot find anything here to resolve the problem...I think we would have to include the taxes in the prices of all of the items. And since I have thousands it's going to take a long time to do so. Hope someone can help...