Update — September 21, 2026: This PST expansion has been paused. On September 18, 2026, the BC government announced it is delaying the professional services PST expansion that was scheduled for October 01, 2026. Citing ongoing trade uncertainty, the province says the change won’t take effect until after that uncertainty has passed — no new date has been set. The information below reflects the rules as they were scheduled before this pause; we’ll update this post again once the province confirms a new timeline. For the official announcement, see the Province of BC’s news release.
This blog provides educational information on the BC PST professional services changes and does not replace professional tax advice.
Updated September 06, 2026: Bill 2, the Budget Measures Implementation Act, 2026, received Royal Assent on April 16, 2026. The expansion of BC PST to specified professional services is now law and takes effect October 01, 2026. The province has since published additional service-specific guidance, and this article has been updated accordingly.
BC PST Professional Services changes take effect October 01, 2026 — bookkeeping, accounting, architectural, engineering and geoscience, security, and non-residential real estate services will all become taxable for the first time. This creates new responsibilities as a business owner in BC and requires additional management and adjustments in your bookkeeping system — with real consequences if you get it wrong. Starting on that date, providers of these services are required to start charging BC PST on their services. If you sell these services, you’ll need to register for a BC PST number and should enrol in eTaxBC so you can file and pay the tax. If you buy these services, you’re looking at a non-recoverable expense added to your business costs. This blog covers what’s changing and what it costs you. Blogs on registration, self-assessment, and penalties are coming next in this series.
SECTION 01 What’s Actually Changing
In the February 2026 provincial budget, BC announced it’s expanding PST to a group of professional services that have never been taxable under the Provincial Sales Tax Act before. That changes on October 01, 2026.
PST has existed since 1948, and it’s mostly applied to goods rather than services. In Budget 2026, the province explains the expansion by noting that these services “have largely remained untaxed under the PST.” As more of what businesses buy shifts from goods to services, this update brings those services into the tax base for the first time.
Kelly’s Explanation: The government’s framing is that the economy shifted to services. From where I sit, it’s more that the rules got more complicated — more compliance, more regulation, more reasons a business owner needs an accountant, an engineer, or a bookkeeper just to stay onside. Either way, the services are being used more, and now they’re taxed more too.
This change is now law. Bill 2, the Budget Measures Implementation Act, 2026, received Royal Assent on April 16, 2026, and the new rules take effect October 01, 2026. If you provide or purchase any of the affected services, you should prepare now.
SECTION 02 Which Professional Services Are Affected
Effective October 01, 2026, BC PST applies at 7% to:
- Accounting services, including bookkeeping and assurance services
- Architectural services — only on 30% of the purchase price
- Engineering and geoscience services — only on 30% of the purchase price
- Non-residential real estate services, including trading services, rental property management, and strata management
- Security services, including private investigation services
Kelly’s Explanation: Bookkeeping is explicitly named here, taxed on the full fee — with no 30% carve-out the way architects and engineers get. If you’re a client of mine, or a bookkeeper reading this, this means bookkeeping and accounting fees in BC become both GST/HST taxable and BC PST-taxable. The BC PST is a direct added cost of doing business for every business buying bookkeeping services in this province.
Does “security services” mean my IT guy?
This is a valid question in today’s environment and directly affects my company. The answer at the time of writing this blog is no. Based on the Province’s published guidance, the BC Security Services Act sets the definition here. “Security services” means services from a business that holds, or must hold, a security business licence. That covers things like security guard services, armoured car guard services, private investigator services, security alarm services, physical security consulting, and door security at licensed liquor establishments. Cybersecurity does not fall in that definition.
IT services, cybersecurity, network management, and data hosting fall outside the Security Services Act entirely. Based on the definitions published so far, they are not part of this PST expansion. If your business pays a managed IT provider or cybersecurity consultant, this BC PST expansion does not apply to those services based on the Province’s current definitions.
SECTION 03 How BC Compares to Other Provinces
BC isn’t inventing something new — Manitoba and Saskatchewan already tax most of these same professional services, including the exact same 30% rule for architectural and engineering fees. There are exceptions in each province, so it’s not a perfect match, but the direction BC is heading is well established elsewhere.
| Service | BC (effective October 01, 2026) | Manitoba (7%) | Saskatchewan (6%) |
|---|---|---|---|
| Accounting / bookkeeping | Taxable | Taxable | Taxable |
| Architectural / engineering / geoscience | Taxable — 30% of price | Taxable — 30% of price | Taxable — 30% of price |
| Non-residential real estate services | Taxable | Not taxable | Taxable — some exceptions |
| Security / private investigation | Taxable | Taxable | Taxable |
Why 30% for architectural and engineering fees specifically?
The government hasn’t published a detailed explanation for why the number is 30% rather than some other figure. What we do know is that BC isn’t picking this number out of thin air — it’s the same 30% rule Manitoba and Saskatchewan already use for the exact same services. BC’s approach appears to follow an existing multi-province convention rather than introducing a new one. Accounting, security, and real estate services don’t get this partial exemption; only architectural, engineering, and geoscience services do.
SECTION 04 If You’re the One Offering These Services
This section is for you if you sell bookkeeping, accounting, architectural, engineering and geoscience, security, or non-residential real estate services in BC. Registration, invoicing, exemptions, self-assessment, and the province’s small commission are outlined here.
Do I need to register, and what does “very low threshold” actually mean?
Unlike GST/HST’s $30,000 small supplier threshold, BC PST’s threshold is extremely small — just $10,000 in gross revenue from eligible sales in a rolling 12-month period. And even that only applies if you don’t maintain an established business premises. If you operate from an established place of business, the obligation to register exists the moment you make a taxable sale, regardless of how much revenue you bring in.
Most bookkeeping, accounting, engineering, security, and property management businesses operate from an established office, and even a home office generally counts for this purpose. That means most professional service providers will not qualify for the small seller exemption — not because of their revenue, but because of where they operate from. A business with established premises and only $500 in sales still doesn’t qualify.
You’ve been able to register up to six months ahead of your first taxable sale — for services starting October 01, 2026, that means registration opened April 01, 2026. It can take up to 21 business days for the registration to be processed so it’s best to register now.
What do I need to change in my invoicing and systems?
Your accounting software and point-of-sale system need to charge PST correctly on these services. If you bill a mix of taxable and non-taxable goods or services on the same invoice, you need to assess each line separately. Staff need to know it’s coming so they’re not caught off guard by client questions in October 2026. Your products and services in your software system should be updated with the new tax codes so it appears automatically on your invoices and you don’t miss any manual changes.
What happens to work that spans the October 01, 2026 cutoff?
If you’re mid-engagement right around the effective date, the rule isn’t simply “work done before October 01, 2026 is exempt.” It comes down to when payment is made or becomes due, not when the work happens:
- If payment becomes due or is paid before October 01, 2026, and all the work is completed before December 01, 2026, no PST applies at all.
- If payment becomes due or is paid before October 01, 2026, but some of the work isn’t finished until on or after December 01, 2026, PST applies only to the portion of the fee for work done on or after October 01, 2026.
- If the invoice becomes due or is paid on or after October 01, 2026, PST applies — even if the work itself was done earlier.
For example, say you finish a bookkeeping engagement in September but don’t invoice the client until October 05, 2026. That invoice is subject to PST, because the invoice date — not the work date — is what triggers it. If you want to avoid that, the invoice needs to be dated and due before October 01, 2026.
Kelly’s Explanation: This one catches people off guard because it feels backwards — you did the work in September, why would October’s tax apply? But billing timing is the trigger here, not delivery timing. If you’ve got ongoing engagements that straddle the cutoff, it’s worth getting those invoices out the door before October 01, 2026 if the work is done, rather than letting them slide into your normal billing cycle.
Are there any exemptions – including for subcontracted work, so PST doesn’t get charged twice?
The province has confirmed that accounting services purchased solely for resale to a client are exempt from PST. For example, let’s say a bookkeeping firm hires a subcontractor to complete part of a client engagement, then bills the client for the full job. This qualifies as a purchase for resale: the subcontractor does not charge PST on their invoice to the firm, because the firm is purchasing those services to resell them to its client. The firm then charges the applicable PST once, on its full invoice to the final client, covering both its own work and the subcontracted portion.
What happens if my supplier doesn’t charge me PST?
If a supplier should have charged you PST on an invoice for services to your company and didn’t, the obligation to self-assess and remit that PST falls on you — the purchaser of the services. This applies whether the missed PST was an honest mistake or because the supplier wasn’t registered at all.
This issue comes up most often with out-of-province suppliers of professional services. For example, if a BC business hires an Ontario accounting firm to prepare their tax return and the Ontario accounting firm does not charge the BC company PST, the PST doesn’t disappear. The BC business receiving the service must self-assess that amount and remit it directly to the province.
Whether the Ontario firm is required to collect BC PST depends on the specific rules for out-of-province businesses.
Self-assessment is its own topic with its own set of rules, forms, and deadlines, and it deserves its own blog. As part of this BC PST series, we’re publishing a dedicated blog specifically on how self-assessment works, step by step. For now, the key point is this: if your supplier doesn’t charge you PST, that doesn’t mean you’re off the hook for it.
Is there any offset for collecting PST, similar to GST/HST
If you’re newly required to register and collect PST, there’s one small “benefit” worth knowing about. BC pays registered businesses a small commission on the amount collected for the administrative burden of charging, collecting and remitting the PST on behalf of the province.
Here’s how the current PST worksheet calculates the commission:
- If the PST you collected in the period is $22.00 or less, your commission is the full amount collected
- If the PST you collected in the period is between $22.01 and roughly $333.33, your commission is $22.00
- If the PST you collected in the period is more than $333.33, then it is 6.6% of the PST collectable up to a maximum of $198
NOTE: You only get the commission if you file your return and pay the full amount owing by the due date. File or pay late, and you lose the commission and are charged a penalty and interest on the amount of PST owed and the penalty. And you must take the commission in as income.
How do I register for BC PST on eTaxBC?
If you’ll be selling any of the newly taxable services on or after October 01, 2026, here’s the general process. Go to the BC government’s PST registration page Register to collect PST and click the “Register Now” button. It will take you to the eTaxBC registration system, but you don’t need an existing eTaxBC login to start.
- Have your Business Number (BN), legal business name, business address, and a description of your business activities ready
- Provide the date of your first anticipated taxable sale — for most businesses affected by this change, that’s October 01, 2026, or later
- Submit your application; once approved, you’ll receive your PST number and a letter confirming your assigned reporting period (monthly, quarterly, semi-annual, or annual, based on how much PST you expect to collect)
PST registration and eTaxBC access are not the same thing: Registering creates your PST account and PST number. eTaxBC gives you online access to file returns, make payments and manage the account. During the PST registration process, you can provide an email address to enrol for the eTaxBC access. If you are a bookkeeper who already uses eTaxBC to manage client accounts, do not assume that your own business already has a PST number. Your business must still register separately if required.
Do I have to file my return electronically?
If you sell accounting, architectural, engineering and geoscience, non-residential real estate, or security services, yes — you’re required to file and remit your PST return electronically, through eTaxBC or your financial institution’s online banking, starting with your first return after October 01, 2026. This isn’t optional the way it normally is for smaller PST registrants; it applies to you regardless of how much PST you collect, simply because you sell one of these new service categories. Paper returns aren’t an option for this group.
SECTION 05 If You’re the One Purchasing These Services
This section is for you if your business buys bookkeeping, accounting, engineering and geoscience, security, or non-residential real estate services in BC. This change affects you very differently than it affects the businesses selling these services.
Why isn’t BC PST treated the same as GST/HST?
It’s tempting to assume the only difference is that GST/HST is federal and PST is provincial. It isn’t. On the surface, both look like the same kind of thing: a percentage for sales tax added onto your invoice. What actually costs you money is what happens to that percentage (additional money) after you pay it — and that’s where the two sales tax systems part ways completely.
Think about the last time you bought a case of paper at Staples. The GST/HST on that purchase gets broken out separately — and if you’re GST/HST registered, you get that money back as an input tax credit (ITC) when you file your return. It passes through your business; it doesn’t stay with you. (We cover exactly how that works in our guide to how GST/HST ITCs work.) The PST on that same purchase works completely differently: it’s just added into the total cost of the paper. There’s no mechanism to claim it back, ever. It becomes part of your cost, permanently — the PST charged on professional services will behave in the same way as it does for our paper example.
GST/HST (federal)
- Before it’s remitted: charged to you, tracked separately
- After you file your return: claimed back as an input tax credit (ITC)
- Net cost to your business: $0 — it passes through
PST (provincial)
- Before it’s remitted: charged to you, added to the cost
- After you file your return: no credit mechanism — nothing to claim back
- Net cost to your business: the full amount you paid
What that means in practice
Example: assume your business is registered for GST/HST, is entitled to claim the full GST paid on purchases as an ITC, and currently pays $1,000 a month for bookkeeping services, plus GST. Starting October 01, 2026, expect a new sales tax on that invoice. But, unlike the recoverable GST/HST portion, you can’t recover the PST portion. Here’s the distinction that actually matters, though: the cash going out the door and the cost to your business are two different things.
Before October 01, 2026
| Amount | |
|---|---|
| Bookkeeping services | $1,000.00 |
| GST (5%) | $50.00 |
| Cash paid at invoice | $1,050.00 |
| GST recovered when GST/HST return is filed | ($50.00) |
| Net cost to the business | $1,000.00 |
After October 01, 2026
| Amount | |
|---|---|
| Bookkeeping services | $1,000.00 |
| GST (5%) | $50.00 |
| BC PST (7%) | $70.00 |
| Cash paid at invoice | $1,120.00 |
| GST recovered when GST/HST return is filed | ($50.00) |
| Net cost to the business | $1,070.00 |
The cash outflow jumps from $1,050 to $1,120. The $50 in GST/HST you paid will reduce the amount of GST/HST you pay the government when you file your next GST/HST return. That is what we mean when we say it flows through the company. PST does not work the same way. Nothing is just flowing through the company. It is a direct increase in your cost for the service. See how the net cost increases to your company: $1,000 to $1,070. The entire increase is the PST, dollar for dollar, and it’s a direct increase to your cost of the same service.
Kelly’s Explanation: A $70/month PST charge doesn’t sound like much on its own — that’s $840 a year on bookkeeping alone. Now stack that against accounting, engineering, security, or property management fees you might also be paying. Those add up fast across a full year. Run your own numbers annually, not monthly, so you see the real total before it surprises you.
The bottom line for your budget
This is a direct increase to your bottom line and cost of doing business — not a filing detail. GST/HST is generally recoverable through ITCs. PST is not. The PST you pay to your bookkeeper, accountant, engineer, or security company is a direct increase to your total operating costs. For some businesses, especially those with thin margins or heavy reliance on these services, that may mean adjusting your own pricing to your customers. Run the numbers on what this will actually cost your business annually so you can adjust your pricing the same way you would for increased software or other legit business expenses.
Kelly’s Explanation: This is the piece I think gets lost in most of the coverage of this change. Everyone focuses on who has to register and charge the tax. But if you’re a small business buying bookkeeping, accounting, or security services in BC, this is simply a direct increase to your costs. It’s not a system you interact with and get money back from. Plan your 2026-27 budget with that in mind now, not in October when the first PST-inclusive bill lands in your inbox.
SECTION 06 Setting Up BC PST in QuickBooks Online
I’ve been getting a lot of questions from clients on exactly this, so here’s the short version.
If You Sell These Services
- Set up the new tax agency for BC PST, if you don’t already have it in place.
- Update your products and services list so each affected service uses the dual tax code — charging both GST/HST and BC PST on sales. This ensures the correct amounts are recorded on the invoice so your clients pay the right amount, and makes sure it gets recorded properly in your bookkeeping records so you can track it.
- With that combined tax code in place, your invoices will auto-populate with the correct sales tax going forward — you won’t have to manually update the tax code to record both taxes every time you create an invoice. You won’t risk forgetting to charge it and having to go back to your client afterward to collect it. And if you don’t charge your customer, you’re still responsible for it — you’ll still have to pay it. Also make sure your inclusive/exclusive tax setting is set the way you want, or you’ll calculate the entire invoice incorrectly.
If You Buy These Services
If you’re already registered for GST/HST and charging/claiming it through QBO’s sales tax module, BC PST tracking is turned on automatically right alongside it. You don’t need to set anything up. All you need to do is use the correct combined GST/HST + BC PST tax code when recording the purchase from your supplier.
If you are not registered for GST/HST, or you use a method under which the PST is recorded as part of the expense, the PST becomes the part of the cost of service.
If PST should have been charged but is missing from the supplier’s invoice, you may need to self-assess and remit it.
In Short:
- Check whether the BC PST tax agency already exists in your software — most businesses already have it, since PST gets paid on regular purchases like supplies and equipment.
- If it’s not there, set it up. If it is, you’re just extending its use to sales.
- Update your products and services with the tax code that charges both GST/HST and BC PST, so it isn’t forgotten when invoicing clients.
- NOTE: Forgetting to charge the BC PST doesn’t mean you don’t have to remit it. It’s easier to charge and collect it on the original invoice than pay it out of pocket or chase a customer down later.
- If you are registered for GST/HST and already using the sales tax module, BC PST tracking turns on right beside it. You just need to choose the correct combined tax code when recording the purchase. If you’re not GST/HST registered, there’s no tax code to pick; the PST is simply part of the cost of the service.
- It all comes down to using the correct tax code, whether on sales or on purchases.
SECTION 07 What to Do Now
If You Sell These Services
- Register for PST if you haven’t already — the window opened April 01, 2026. Registering late doesn’t lock you out, but the obligation to charge, collect, and remit starts from your first taxable sale whether you’re registered or not, so waiting just means catching up later.
- Review your invoicing and accounting software now so it’s ready to charge PST correctly, including the 30% rule where it applies.
- Set up electronic filing for your PST returns. It’s mandatory for these newly taxable services, regardless of how much PST you collect.
If You Buy These Services
- Ask your suppliers now whether they’ll be charging PST as of October 01, 2026 so there are no surprises — and so you’re not stuck self-assessing later.
- Model the actual annual cost impact on your business, and decide now whether your own pricing needs to adjust.
- Check the province’s accounting services page for official guidance specific to bookkeeping and accounting.
These changes are now law and take effect October 01, 2026. If you provide one of the affected services, now is the time to complete your PST registration, update your invoicing system and notify your clients.
If you are unsure whether the rules apply to your business, speak with your accountant or tax professional or call the BC Ministry of Finance. If you need help registering for PST, updating your invoicing system or understanding the cost to your business, that’s exactly the kind of thing I can help clients work through. Reach out and we will figure it out together.
For questions specific to your tax situation, your accountant or a tax professional is the right call; I don’t provide tax advice.
For the official source on this change, see the Province of BC’s Notice 2026-001: Notice to providers of professional services, and subscribe for email notifications whenever the province updates this page.
More in This Series (Coming Soon)
How to Register for BC PST on eTaxBC: A Full Walkthrough
How BC PST Self-Assessment Actually Works
BC PST Penalties and Interest — and How They’re Different From CRA
Paying PST by Bank vs. eTaxBC — and Why the Difference Can Cost You