Effective October 1, 2026, British Columbia is expanding the Provincial Sales Tax (PST) to apply to several professional services that were previously exempt.
If your business provides professional services in British Columbia, these changes may result in new obligations to register for PST, collect the tax from your customers, and file PST returns with the Province. Even if your business does not provide professional services, you may begin seeing PST on invoices from businesses that do.
While not every business will be affected in the same way, now is a good time to understand these changes and determine whether they impact your business.
What This Means for Your Business
If You Provide Professional Services
Beginning October 1, 2026, certain professional service providers may be required to charge and collect 7% BC PST on their taxable services. Businesses affected by these changes should determine whether they are required to:
- Register for a BC PST account;
- Charge and collect PST on taxable services;
- File periodic PST returns; and
- Remit PST collected to the Province of British Columbia.
The legislation applies to several professional service industries, including:
- Accounting and bookkeeping services
- Architectural services
- Engineering and geoscience services
- Security and private investigation services
- Non-residential real estate services, including trading services, rental property management services and strata management services
Special Rule for Engineering, Architecture, and Geoscience Services
Unlike most newly taxable professional services, PST will generally apply to 30% of the purchase price of architectural, engineering and geoscience services rather than the full purchase price.
Because the application of the new rules depends on the specific services provided and the facts of each engagement, businesses providing these services should review their billing practices and contact our office if they have questions regarding the calculation of PST.
If You Purchase Professional Services
Even if your business is not required to collect PST, these changes may still affect you.
Beginning October 1, 2026, businesses purchasing professional services may begin seeing 7% BC PST on invoices from accountants and other professional service providers that are subject to the new rules.
As an accounting firm, we will also be required to charge 7% BC PST, in addition to the existing 5% GST, on applicable invoices beginning October 1, 2026, subject to the transitional rules.
Unlike GST, PST generally cannot be recovered through input tax credits, meaning it may represent an additional business cost unless a specific exemption applies.
What Should You Do Now?
Although the new rules do not take effect until October 1, businesses should begin preparing now to avoid any last-minute surprises.
We recommend that you:
- Review whether the professional services your business provides will become subject to PST.
- Confirm whether you are required to register for a BC PST account.
- Ensure your invoicing and accounting systems are prepared to charge PST, if required.
- Review your pricing, engagement letters, and client communications to determine whether updates are needed before the new rules take effect.
We’re Here to Help
The expansion of PST to professional services is one of the most significant changes to British Columbia’s sales tax regime in recent years. While these rules may not affect every business, many organizations that have never previously dealt with PST may now have new compliance obligations.
If you have questions about how these changes apply to your business or whether you are required to register, collect, or remit PST, please contact our office. We would be pleased to review your specific circumstances and help ensure your business is prepared before the new rules take effect.
