The proposed expansion of the Provincial Sales Tax (PST) in British Columbia marks a significant shift for many service-based businesses, with new rules set to take effect on October 1, 2026. For the first time, a 7% PST will apply to several professional and service categories that were previously exempt, potentially impacting pricing, contracts, and overall cost structures.
What changed:
- Accounting and bookkeeping — 7% on the full fee
- Architectural services — 7% applied to 30% of the fee
- Engineering and geoscience services — 7% applied to 30% of the fee
- Security and private investigation services — 7% on the full fee
- Rental property and strata management — 7% on the full fee
- Non-residential real estate commissions — 7% on the full fee
The BC Chamber has plainly stated the PST expansion has hurdles for business owners:
A cost you can’t recover. BC’s PST is non-refundable. Unlike GST and HST systems in other provinces, businesses can’t claim it back. The tax piles up at every stage rather than being paid once by the end consumer. This is what people mean when they call it a “tax on a tax.”
A hit to competitiveness. In Alberta, there is no provincial sales tax at all. In provinces using HST, businesses can recover what they pay. BC’s PST is already the least competitive sales tax structure in Canada, and this expansion compounds that disadvantage.
New administrative obligations. Businesses that provide newly taxed services must register for PST, charge it to clients, and remit it to the province. New filing requirements and compliance costs apply regardless of business size.
WHAT TO DO NEXT
- If you provide newly taxable services: Begin preparing to register for PST. Registration opens April 1, 2026, six months before the changes take effect.
- Review your contracts: PST applies based on when services are performed, not necessarily when invoiced. Timing matters.
- Model the cost impact: Estimate what the new costs mean for your bottom line before October 1. For businesses relying heavily on accounting, engineering, or security services, the annual impact can add up quickly.
- Make your voice heard: Your local chamber of commerce is your channel. Share how this affects your business. Member voices shape the BC Chamber’s advocacy and ongoing engagement with government on this issue.
Find out if your business is required to register to collect PST: Register to collect PST – Province of British Columbia
**The BC Chamber of Commerce has signed a joint statement with 18 industry organizations calling on the province to reconsider this expansion. The changes still require Royal Assent before they take effect, which is the formal step where the Lieutenant Governor signs the legislation into law. That window remains open. We will continue to update you as this develops.