Businesses: Prepare for BC PST on more professional services

Given the breadth of the new rules and the number of available exemptions, businesses that provide or purchase these newly taxable services should carefully review the nature of the services they provide or acquire to determine whether PST applies and whether any exemptions may be available. If PST does apply, it’s important to assess the impact on their operations, including PST registration and remittance obligations, billing practices, budgeting, and other internal processes.  

Who will have to pay BC PST on these services?

BC residents (i.e., a person who resides, ordinarily resides or carries on business in BC) must pay BC PST on these professional services, where the services are provided in BC or related to property, physical or legal presence, or an activity or transaction in the province, unless an exemption applies.  
 
Non-BC residents may also have to pay BC PST but only where the service is somehow related to the province.  

What services are affected by the change?

Accounting and bookkeeping services  

The full purchase price of taxable accounting services will be subject to PST, in most cases. Under the BC PST regulations, this includes activities such as preparing accounting records, providing assurance services, billing, cost, financial, forensic, management accounting, tax accounting, account reconciliation, etc. These services are defined in the Provincial Sales Tax Act, subject to change.

Note that PST could apply to the accounting services, even if they aren’t provided by a CPA. Therefore, bookkeeping or similar services could also be considered an accounting service.

Specific exemptions to PST may apply to accounting services when provided in connection with estate administration, bankruptcy, liquidation, or certain residential rental property and strata management activities. Architectural, engineering and geoscience services  

BC PST will apply to 30% of the purchase price of taxable architectural, engineering, and geoscience services. If a project involves multiple types of services, only those that meet the criteria will be subject to PST. Under the BC PST regulations, this includes advice or services (including any ancillary advice or services) that fall within the practice of professional architecture, engineering, or geoscience. The service must also be provided by a person registered or required to be registered with the relevant provincial professional associations.  

Specifically, PST will apply to architectural services, including schematic design, design development, construction documents, bidding or negotiation, and construction contract administration services (based on in-scope phases defined by the Architectural Institute of British Columbia (AIBC)). PST won’t apply to pre-design and post-construction services, as these phases are exempt.  

Similarly, PST will apply to engineering and geoscience services, including schematic design services, design development and contract document services, tender services (based on in-scope phases defined by the Association of Consulting Engineering Companies British Columbia's (ACEC-BC)).  

Non-residential real estate services  

The full purchase price of taxable non-residential real estate services  for property in BC will be subject to BC PST. Under the BC PST regulations, this includes trading services, rental property management services, and strata management services provided in relation to non-residential real estate. The service must also be provided by a licensed broker, or a person licensed in another jurisdiction under similar legislation. These services are defined in Real Estate Services Act.  

Exemptions and exclusions are available, in certain cases. PST won’t apply to rent paid to landlords or to strata fees paid to strata corporations. In addition, services provided in relation to residential property and qualifying farmland (Class 9 property under the Assessment Act) won’t be subject to PST. Accordingly, for mixed-use properties that include both commercial and residential units, PST applies only to the portion related to the commercial units.  

Security services including private investigation services

The full purchase price of taxable security services will be subject to PST. Under the BC PST regulations, this includes services such as armoured car guard service, a private investigator, a security alarm service, a security consultant and guard service, loss prevention service. The service must also be provided by provided by a person who holds or is required to hold a security business license. These services are defined in the Security Services Act.

PST won’t apply to certain security services, such as house-sitting and security alarm services other than alarm monitoring, as they are excluded from the new rules.  

General exemptions and exclusions  

The availability of an exemption will often depend on the specific facts and circumstances of the supply being made. In addition to exemptions and exclusions that apply to specific services, several important exemptions remain available for most of the taxable services. These include:

• Services acquired solely for resale  
• Certain First Nations-related activities  
• Purchases by the federal government
• Qualifying related-party transactions  
• Services provided to diplomatic and consular representatives  
• Purchases from qualifying small sellers

Other considerations

What happens if a purchaser carries on business in multiple jurisdictions?  

If a purchaser carries on business both in and outside of BC and a portion of the service doesn’t relate to property or activities in BC, an exemption may be available for that portion of the purchase price. In addition, services provided by an individual to their employer in the course of employment will not be subject to PST.

Are fees associated with the service considered part of the purchase price? Fees charged on these taxable services (e.g., administrative or technology fees) are considered part of purchase price and would be subject to PST. There are a few exceptions for certain costs if they are reasonably reflecting the cost of the activity, such as the transmitting, printing, or copying of documents. Similarly, disbursements are considered part of purchase price and would be subject to PST, except for certain costs, including travel, food, and accommodations.

What are the transitional rules?

With the rules coming into effect on October 1, 2026, PST will not apply to an in-scope service if an invoice becomes due or is paid before that date, provided all services are completed before December 1, 2026. However, if any portion of the services is performed on or after December 1, 2026, the portion of the consideration attributable to services performed on or after October 1, 2026 will be subject to PST. In addition, PST will apply to services billed on or after October 1, 2026, even if they relate to work performed before that date.

Therefore, purchasers with ongoing engagements may wish to have interim invoices issued for work completed before October 1, 2026. Pre-billing for services to be provided in the two-month period following that date may also be considered.

How can service providers prepare for the change?

Businesses providing newly taxable services should prepare for PST registration and compliance well in advance of October 1, 2026. This includes determining whether registration is required and ensuring systems and processes are in place to charge and remit PST from that date. In particular, invoices should reflect the correct tax treatment, including the application of any special rules, such as the 30% taxable base for architectural, engineering, and geoscience services.  

It’s important to note that service providers located outside BC may also have BC PST registration and remittance obligations if they provide services to BC residents that relate to activities or property in the province.

Businesses may also need to review and, where appropriate, unbundle services on invoices to clearly distinguish taxable from non‑taxable elements, with corresponding adjustments to pricing and contract terms. Addressing these requirements will often require coordination across functions, including sales, technology, legal, and accounting, to implement system changes and ensure operational alignment.  

Finally, transitional rules may provide relief for services performed before the effective date. Coordination between service providers and purchasers will be important to ensure invoices are issued appropriately.

How can service purchasers get ready for the change?

Unlike GST/HST, which businesses can generally recover through input tax credits, BC PST is not recoverable. As a result, costs can accumulate at each stage where taxable services are provided, creating a potentially significant financial impact that should be reflected in budgeting.

These rules also introduce additional complexity for businesses operating across multiple jurisdictions. BC PST may apply to services provided outside the province if they are supplied to a BC resident and relate to activities or property in BC. This differs from GST/HST place‑of‑supply rules for many services, which generally determine tax based on where the client is located. As a result, the same service may be subject to BC PST as well as HST or other provincial sales taxes—for example, tax filing services provided by an Ontario accountant to a BC resident—leading to overlapping or differing tax obligations.

In addition, purchasers may be required to self-assess and remit BC PST in certain situations. Where PST applies but is not charged or collected by the seller, the obligation shifts to the purchaser to remit the tax directly to the province.

Takeaway

Businesses and individuals purchasing these professional services as well as service providers should review their arrangements, internal procedures and processes now, as 7% PST will apply starting October 1, 2026. Advanced planning, including determining the taxable portion of services, allocating amounts across jurisdictions, identifying available exemptions, and preparing for PST registration and compliance, can help ensure a smooth transition.  
 
We are here to help! Contact your local advisor or reach out to us here. 
 

^{Disclaimer 
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.}