British Columbia's Provincial Sales Tax (PST) is a 7% retail sales tax charged on most taxable goods and certain taxable services sold or leased in BC, on top of the 5% federal GST — so most taxable purchases carry 12% combined sales tax. Unlike GST, BC PST is not a value-added tax: there is no broad input tax credit mechanism, so PST you pay on business inputs is frequently a real cost rather than something you recover.
The biggest 2026 change is the expansion of PST to certain professional services effective October 1, 2026. This guide explains what is taxable, the new rules, exemptions, and how to register, file, and remit.
What PST applies to
As of the 2026 tax year, BC PST generally applies to:
- Tangible personal property (most physical goods) sold or leased in BC.
- Software, including software used on devices in BC.
- Telecommunication services and certain digital services.
- Short-term accommodation (with additional municipal and regional taxes in some areas).
- Legal services and, from October 1, 2026, a wider set of professional services (see below).
- Related services to tangible goods, such as repairs and maintenance to taxable items.
Historically, most professional and personal services were not subject to PST — which is why BC PST has been described as a "goods" tax with a narrow service list. That distinction is narrowing in 2026.
The October 1, 2026 expansion to professional services
Following BC Budget 2026, the province released Notice 2026-001 confirming that PST expands to certain professional services, effective October 1, 2026, at the 7% rate. The newly taxable services include:
- Accounting services, including bookkeeping and assurance services.
- Non-residential real estate services, including trading services, rental property management, and strata management.
Architectural, engineering, and geoscience services receive special treatment: PST applies to 30% of the purchase price, producing an effective PST rate of 2.1% (7% × 30%) on the full fee.
Firms that will sell these newly taxable services on or after October 1, 2026 and are not already registered can register from April 1, 2026 — up to six months ahead of the change. Transitional rules generally mean amounts that become due or are paid before October 1, 2026 are not subject to PST. If your business buys these services, budget for the added cost; if you sell them, plan your registration, invoicing, and systems now.
BC PST quick-reference table (2026)
| Item | 2026 treatment |
|---|---|
| Standard PST rate | 7% on most taxable goods and listed services |
| Combined with GST | 12% (5% GST + 7% PST) on most taxable purchases |
| Accounting / bookkeeping services | Taxable at 7% from October 1, 2026 |
| Architecture / engineering / geoscience | 7% on 30% of fee = 2.1% effective, from Oct 1, 2026 |
| Small seller exemption | Generally under $10,000 annual taxable sales |
| Out-of-province registration trigger | $10,000+ taxable sales into BC over 12 months |
| Basic groceries, most food | Exempt from PST |
| Children's clothing, books, bicycles | Exempt from PST |
Common PST exemptions
Even with the 2026 expansion, many items remain exempt from BC PST, including:
- Most food for human consumption and basic groceries.
- Books, newspapers, and magazines.
- Children's clothing and footwear.
- Bicycles.
- Goods purchased for resale (with the proper documentation).
- Certain production machinery and equipment used in manufacturing.
GST may still apply to some of these even when PST does not, so check each tax separately. For how PST fits with GST and other provinces' sales taxes, see our GST, HST, and PST guide for Canada.
How to register, file, and remit
Register. If you sell or lease taxable goods, or sell taxable services, in the ordinary course of business in BC, you must register to collect PST — unless you qualify as a small seller (generally under $10,000 in annual taxable sales). You register through eTaxBC. Out-of-province sellers must register once they reach $10,000 or more in taxable sales into BC over 12 months.
File. BC assigns you a reporting period — monthly, quarterly, semi-annual, or annual — based on how much PST you collect. You file each PST return and remit the tax through eTaxBC. Returns are generally due by the last day of the month following the end of your reporting period.
Remit and stay compliant. Even a period with no taxable sales requires a nil return. Keep records of taxable and exempt sales and the exemption certificates you rely on, because BC can assess unremitted PST retroactively — including for sellers who should have registered earlier but did not.
To estimate the GST and PST on a specific sale, use our sales tax calculator, and for BC-specific questions, see our BC tax FAQ.
PST is not GST: why the difference matters
Because BC PST and GST work so differently, it is worth being precise about the contrast — it changes how each tax hits your margins.
- Input tax credits (ITCs). Under GST, a registered business claims back the GST it pays on business purchases, so GST is generally cost-neutral to the business and ultimately borne by the final consumer. BC PST has no broad equivalent. Specific PST exemptions exist (for example, goods bought for resale, or qualifying production machinery), but absent an exemption, PST you pay on inputs is a real, unrecoverable cost. That changes pricing and procurement decisions.
- What's taxable. GST applies to a very broad base of goods and services nationwide. BC PST historically applied mainly to goods plus a short list of services — a list that widens on October 1, 2026 to include accounting and certain real estate services.
- Registration and returns are separate. A GST/HST account with the CRA does not register you for BC PST. You hold a separate PST account with the province, file separate returns through eTaxBC, and follow separate rules.
Penalties and getting it wrong
BC can assess unremitted PST retroactively, with penalties and interest, including against businesses that should have registered earlier and did not. Two common errors are (1) treating a taxable service as exempt — a live risk for service firms during the 2026 transition — and (2) failing to keep valid exemption documentation for sales you treated as exempt. When in doubt about whether a specific product or service is taxable, confirm it before you decide not to charge PST, because the cost of being wrong falls on the seller.
How RN Canada helps
RN Canada is an accounting and advisory firm with a Vancouver, British Columbia office (head office in Edmonton, Alberta) that helps BC businesses get PST right — from deciding whether a product or service is taxable, to registering through eTaxBC, to filing returns on the correct schedule. With the October 1, 2026 expansion to accounting and other professional services, we help affected firms register on time, update their invoicing and accounting systems, and apply the transitional rules correctly. Our founder, Ozgur Duymaz, holds the CPA (Canada), ACCA (UK), and CMA (US) designations. Learn more about our bookkeeping and tax filing services.
Frequently asked questions
British Columbia's Provincial Sales Tax (PST) is 7% on most taxable goods and certain taxable services. PST is charged in addition to the 5% federal GST, so the combined sales tax on most taxable BC purchases is 12%. Some items carry different rates — for example, certain vehicles are taxed at higher PST rates, and liquor and some other goods have their own rates.
Yes. Following BC Budget 2026, PST expands to certain professional services effective October 1, 2026, at the 7% rate. This includes accounting services (bookkeeping and assurance) and non-residential real estate services. Architectural, engineering, and geoscience services are taxed on 30% of the fee, an effective rate of 2.1%. Affected firms not already registered can register from April 1, 2026.
You must register if you sell or lease taxable goods or sell taxable services in BC in the ordinary course of business. Small sellers with under $10,000 in annual taxable sales may be exempt from registration. Out-of-province sellers must register once they make $10,000 or more in taxable sales into BC over 12 months. You can register up to six months before your first taxable sale.
Common PST exemptions include most food for human consumption, basic groceries, books and newspapers, children's clothing and footwear, bicycles, and most services (though this is narrowing in 2026). Goods bought for resale and certain production machinery and equipment are also exempt with the proper documentation. GST may still apply even when PST does not.
Your BC PST reporting period (monthly, quarterly, semi-annual, or annual) is assigned based on the amount of PST you collect. You file your PST return and remit the tax through eTaxBC by the due date for your period — generally the last day of the month after the reporting period ends. Filing a nil return is still required even if you collected no PST in the period.
GST is the 5% federal Goods and Services Tax that applies across Canada; PST is the 7% provincial sales tax that applies only in British Columbia. They are separate taxes with separate registration, returns, and rules. GST is a value-added tax where you claim input tax credits on business purchases; BC PST is a straight retail tax with no broad equivalent to input tax credits, so PST you pay on inputs is often a real cost.