BC Expands PST to Professional Services: What Businesses Need to Know Before October 1, 2026
The Province of British Columbia has announced one of the most significant Provincial Sales Tax (PST) changes in recent years. Beginning October 1, 2026, PST will apply to several professional services that have historically been exempt from the tax.
These changes will affect both businesses that provide these services and businesses that purchase them.
Which Services Will Become Subject to PST?
Effective October 1, 2026, the 7% PST will apply to:
- Accounting services, including bookkeeping, tax, assurance, and audit services
- Architectural services
- Engineering and geoscience services
- Security services, including private investigation services
- Non-residential real estate services, including:
- Commercial real estate commissions
- Rental property management services
- Strata management services
Businesses providing these services will generally be required to register for PST, charge PST on taxable services, and remit the tax to the Ministry of Finance.
Special Rule for Engineering, Geoscience, and Architectural Services
One notable exception applies to architectural, engineering, and geoscience services.
Rather than applying PST to the full fee, PST will apply to only 30% of the purchase price of these services.
For example:
- Engineering fee: $10,000
- Taxable portion: $3,000 (30%)
- PST at 7%: $210
This results in an effective tax rate of 2.1% on the total invoice value.
Who Needs to Register?
If your business provides any of these newly taxable services and is not already registered for PST, you may be required to register with the Ministry of Finance.
The Ministry of Finance began accepting registrations for affected businesses on April 1, 2026.
Businesses should review their service offerings now to determine whether registration will be required and ensure billing systems are prepared before the October 1 implementation date.
What Does This Mean for Businesses Purchasing These Services?
For many businesses, this change will increase the cost of professional services because PST is generally not recoverable in the same manner as GST input tax credits.
Organizations that regularly engage accountants, bookkeepers, property managers, security providers, engineers, architects, or commercial real estate professionals should consider the impact on budgets, project costs, and service contracts.
Are There Exemptions?
The Ministry of Finance has confirmed that certain exemptions and special rules may apply depending on the nature of the service, the location of the purchaser, and how the service is used. Additional administrative guidance continues to be released.
Because the rules differ by service type, businesses should review their specific circumstances before assuming PST applies—or does not apply.
How Avisar Can Help
These changes create new compliance obligations for many businesses and will require updates to invoicing, contracts, pricing models, and tax processes.
If you are unsure whether your services will become taxable, whether you need to register for PST, or how these changes will affect your business, contact your Avisar advisor or book a free consultation.
