BC charges two separate sales taxes — 7% PST and 5% GST — instead of one combined HST because BC tried harmonization and undid it. The province adopted the HST in 2010, voters rejected it in a 2011 referendum, and BC reverted to the GST-plus-PST system in 2013. Ontario and the Atlantic provinces kept their HST; BC did not go back.
What each tax actually is
| GST | BC PST | |
|---|---|---|
| Level | Federal | Provincial |
| Rate | 5% | 7% |
| Structure | Value-added tax, collected at each stage of the supply chain | Single-stage retail tax, charged at final sale |
| Recoverable on business inputs? | Yes — input tax credits (ITCs) | Generally no |
| Registered with | CRA | Province of BC (eTaxBC) |
| Base | Broad — most goods and services nationwide | Narrower — a defined list of goods and services |
Why the ITC difference matters for your business
This is the practical consequence of the two-tax structure:
- GST paid on a business purchase is usually recoverable. A GST-registered business claims an input tax credit for the GST it paid, subtracts it from the GST collected on sales, and remits only the net. GST is largely a flow-through — the final consumer bears it, not the business.
- PST paid on a business purchase is usually a real cost. BC PST has no broad input-tax-credit equivalent. Absent a specific exemption (goods bought for resale, certain production machinery), PST paid on an input stays on the books as an expense, not a recoverable credit.
That asymmetry changes how a BC business should think about pricing and procurement: a $10,000 taxable purchase carries $500 in GST that generally comes back, and $700 in PST that generally does not.
Two registrations, two returns
Because GST and PST are administered by different governments, a BC business selling taxable goods or services typically needs:
- A GST/HST account with the CRA — see our GST, HST and PST guide for the $30,000 registration threshold.
- A PST account with the province — see how to register for BC PST.
One registration does not cover the other. Returns, due dates, and payment portals are separate: GST/HST returns go to the CRA, PST returns go through eTaxBC — see BC PST filing and remittance.
Same purchase, different tax treatment
An item can land differently under each tax. Basic groceries, for example, are exempt from PST but can still carry GST depending on how they're sold. Checking one tax tells you nothing about the other — each has to be verified on its own terms. For the current lists, see what's taxable under BC PST and BC PST rate 2026 for the combined 12% picture on a standard taxable purchase.
How RN Canada helps
RN Canada is an accounting and advisory firm with a Vancouver, British Columbia office (head office in Edmonton, Alberta) that manages GST and PST as the two distinct taxes they are — tracking which is recoverable, filing both sets of returns, and advising on the input-tax-credit position for larger purchases. Our founder, Ozgur Duymaz, holds the CPA (Canada), ACCA (UK), and CMA (US) designations. See our tax return preparation service, or model a transaction with our sales tax calculator.
Frequently asked questions
BC tried harmonizing GST and PST into a single HST in 2010 but reversed the change after a 2011 referendum, returning to the separate GST-plus-PST system in 2013. Since then, BC has kept the two-tax structure rather than re-harmonizing, unlike Ontario and the Atlantic provinces, which use HST.
GST, generally. A GST-registered business claims input tax credits (ITCs) to recover the GST it pays on business purchases, so GST is largely cost-neutral to the business. BC PST has no broad equivalent — a business that pays PST on an input usually cannot recover it, so it becomes a real cost.
Yes. A GST/HST account with the CRA does not register a business for BC PST, and a BC PST registration does not cover GST. They are separate accounts, separate returns, and separate filing schedules — federal for GST, provincial (eTaxBC) for PST.
Not always. GST applies to a broad base of goods and services across Canada. BC PST applies to a narrower, defined list of goods and services. An item can be subject to GST but exempt from PST, or vice versa, so each tax has to be checked separately.
No. GST is a value-added tax collected at each stage of the supply chain, with credits to avoid double taxation. BC PST is a single-stage retail sales tax charged at the final sale to the end user, with no broad credit mechanism for tax paid earlier in the chain.