- Client Guide · Tax & Compliance
BC's 2026 PST expansion, explained plainly.
On October 1, 2026, British Columbia’s 7% Provincial Sales Tax reaches accounting, bookkeeping and other professional services for the first time. Here’s exactly what’s taxable, what stays exempt, and the moves to make before the deadline.
What's changing on October 1, 2026
BC's PST has historically applied mostly to goods. Budget 2026 broadens it to include a set of professional services, and the province released the final regulations on July 9, 2026.
For most business owners, the headline is simple: professional services that were previously PST-free — accounting and bookkeeping chief among them — generally become subject to 7% PST. Whether a specific engagement is taxable can still depend on where the work relates to and who's buying it, which is where the detail below matters.
The most common mistake we're seeing is assuming PST is triggered by the invoice date alone. It isn't. Two separate triggers apply — when payment becomes due and when the service is delivered — and a December 1, 2026 cutoff decides the edge cases. See the transitional rules below before you re-code a single invoice.
Which services are now taxable
The 7% rate applies differently by service type. Some are taxed on the full fee; architecture, engineering and geoscience are taxed on only 30% of the fee — an effective rate of 2.1%.
Accounting & bookkeeping
Financial statements, journal entries, payroll, budgets, tax and information returns, bookkeeping, billing, reconciliations, assurance/audit work, and tax advice or representation.
Security & investigation
Security guard services, private investigation, and commercial alarm monitoring.
Non-residential real estate
Commercial real estate commissions, and non-residential property and strata management services.
Architecture, engineering & geoscience
PST applies to 30% of the fee, so the effective rate on the full invoice is 2.1%.
The real cost: PST doesn't come back
This is the part that catches people off guard. Unlike GST/HST, BC PST has no input tax credit. When you pay PST on a business service, that money is gone for good — it can't be recovered on a return. For businesses that lean on outside accounting, security or engineering support, it's a straight, permanent increase to operating costs.
What the increase looks like
Illustrative figures based on CPABC's published examples. Smaller businesses and not-for-profits, which rely most heavily on external providers, tend to feel this most.
Transitional billing rules
Whether PST applies to a sale around the changeover comes down to two questions: when does the consideration become due, and when are the services provided? Here's how the province resolves the common scenarios.
| Scenario | Services provided | Payment due | PST? |
|---|---|---|---|
| Prepaid, short window | Oct & Nov 2026 (entirely before Dec 1) | Before Oct 1, 2026 | No PST |
| Prepaid, crosses Dec 1 | Oct–Dec 2026 | Before Oct 1, 2026 | PST on Oct+ portion |
| Billed after changeover | Sept 2026 (or earlier) | On/after Oct 1, 2026 | Yes — taxable |
| Monthly contract | Each month's service | Bill issued on/after Oct 1 | Yes, from Oct bills |
You may have seen guidance claiming that prepaying in September for October services always avoids PST. That's only true if all the services are delivered before December 1, 2026. Prepay in September for work running October through December, and PST applies to every month of that engagement. And any payment that becomes due on or after October 1 is taxable regardless of when the work was done — even for September services billed in October.
A worked example
You're paid on September 15 for accounting services covering October, November and December 2026 at $100/month. Because the work extends past December 1, PST applies to all three months: $100 × 3 × 7% = $21 of PST.
Exemptions worth knowing
The rules aren't all one-directional. Several exemptions can reduce or eliminate PST — and for firms serving clients across provinces, these matter a lot.
Work relating to outside BC
Accounting services that relate to a presence, activity, transaction or property outside BC are exempt. Where an engagement is split between BC and elsewhere, the out-of-BC portion is exempt — the buyer makes a reasonable estimate and provides it to the seller. Example: a BC-based chain with 35% of its employees in BC pays PST on only that 35% of a national payroll service.
Purchased for resale
If you buy accounting services purely to resell to your own clients (say, subcontracting tax returns), that purchase is exempt — give the supplier your PST number or a Certificate of Exemption. You then charge your client PST when you provide the finished service.
Residential vs. non-residential property management
Accounting services provided as part of residential rental or strata management (by a licensed provider) are exempt. The same work provided as part of non-residential real estate services is taxable.
If you're a BC business buying taxable accounting services from outside BC and aren't charged PST, you must self-assess — report it on your PST return, or file a Casual Remittance Return (FIN 405) if you don't have a PST number.
What to do before October 1
Register for PST if you sell these services
If you'll provide taxable professional services on or after October 1, you must register to collect and remit PST via eTaxBC — even if you're not a CPA and aren't currently registered. Registration opened April 1, 2026; do it sooner rather than later, especially if you'll bill for services extending past November 30.
Update your accounting software
Set up new tax codes in Xero or QuickBooks Online for the 7% service rate and the 2.1% effective rate on engineering-type fees. Separate residential (exempt) from non-residential (taxable) property management fees in your chart of accounts so they're coded correctly from day one.
Review contracts and prepaid engagements
Check active service agreements, retainers and prepaid packages against the transitional rules — particularly anything that crosses the December 1, 2026 line. Confirm who bears any newly introduced tax under each contract.
Model the annual cost impact
If you buy meaningful volumes of accounting, security or engineering services, estimate the yearly increase now so it's in your budget rather than a surprise on your first post-October invoice.
How PST applies to your Transcounts bill
A question we're hearing from clients: will my bookkeeping invoice now include 7% PST? For most, the change is small or doesn't apply at all. Here's how we determine it — so there are no surprises.
What matters isn't where you're located or whether you hold a BC PST number. It's what the work we do for you relates to. Services that relate to a BC presence, activity, transaction or property are taxable; services that relate to another province or country are exempt. We assess this for you and apply the tax correctly, so you don't have to.
Where you fit
BC business with BC operations
Your books relate to activities and presence in BC — the standard case for BC-based clients.
Out-of-province business with real BC operations
You run a distinct BC entity, branch or division and we keep those books. That work relates to BC.
Out-of-province seller with BC customers only
You're based in Ontario or the US and simply ship to BC buyers while we handle your corporate books. Most of that work relates to your home jurisdiction — only the portion genuinely tied to BC is taxable, and it's often small or nil.
Business with no BC connection
No BC presence, transactions, assets or activity that our work touches.
How we handle a split invoice
When part of our work relates to BC and part relates elsewhere, only the BC portion is taxable. You give us a reasonable written estimate of the out-of-BC share, we apply PST to the remainder, and we keep your declaration on file. We choose the allocation basis that genuinely reflects your engagement — for payroll it may be where your team is; for BC-specific sales-tax work it's that scoped task — rather than a blanket revenue percentage that could tax you more than necessary. Keeping your costs accurate and your records audit-ready is the point.
Holding a BC PST number does not mean a percentage of your whole bill is automatically taxed. Registration governs the tax you collect on your own sales — it doesn't determine whether our bookkeeping for you relates to BC. We look at the actual work, not your registration status.
Is there a minimum BC share that's exempt?
No. BC has no de-minimis threshold — if a real BC portion exists, it's taxable however small. The only "$10,000" figure in play decides whether you must register to collect PST on your own sales; it has nothing to do with the PST on services you buy. The full fee is exempt only when none of our work relates to BC.
We handle the assessment, apply the correct rate to the right portion, and keep the documentation an auditor would expect — so your invoicing stays accurate and compliant without adding to your plate. For any genuinely unclear engagement, we confirm the treatment directly with BC's Consumer Taxation Branch before billing.
Frequently Asked Questions
Quick, sourced answers to what business owners are asking about the BC PST expansion.
Largely, yes. Accounting services relating to a presence, activity, transaction or property outside BC are exempt. For mixed engagements, the out-of-BC portion is exempt based on a reasonable estimate the buyer provides to the seller. Services bought purely for resale to your own clients are also exempt if you provide your PST number or a Certificate of Exemption.
You self-assess and pay the PST directly to the province. With a PST number, you report it on the return for the period covering when the amount was paid or became due. Without one, you file a Casual Remittance Return (FIN 405) by the last day of the month after the amount was paid or became due.
Not sure how this hits your business?
We’ll audit where PST now applies across your vendors and services, configure your PST filing setup, and get your books coded correctly before October 1 — so the transition is a non-event.
Question 1
Do you provide any of these professional services, or are you strictly a purchaser?
Question 2
Do you have long-term or prepaid engagements that cross the October–December window?
Question 3
What accounting platform do you use to track sales taxes today?
Sources & further reading
- Government of British Columbia — Notice to providers of professional services (scope, transitional rules, exemptions, registration)
- CPABC — What BC's new PST rules mean for businesses (cost examples, policy context)
- BC Chamber of Commerce — BC's PST Expansion: What Every Business Needs to Know (service list, non-recoverability)
This guide is provided for general information by Transcounts Services Inc. and is not a substitute for the legislation or for tax advice specific to your situation. Rates, dates and exemptions should be confirmed against the BC government's official publications. Last reviewed August 1, 2026.