--- title: "BC PST for Small Business: Who Registers, 7% Rate, 2026 Change" url: https://www.everstonecpa.com/blog/bc-pst-small-business-guide description: "PST is not a smaller GST: different trigger and exemptions, separate return. See the $10,000 small-seller line and the October 2026 change to services." type: guide updated: 2026-10-12 summary: "You must register for BC PST if you sell or lease taxable goods in BC, or provide software, telecommunication services or certain taxable services. The general rate is 7%. Most services have been exempt, but from October 1, 2026 PST extends to specified professional services, including accounting, architectural and engineering." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) BC PST guide GST/HST & PST # BC PST: *who registers, what is taxable, and what changes in October 2026* By EverStone CPA · Reviewed July 2026 · 8 min read ## Sources The registration thresholds, rates and exemptions on this page come from the following. PST rules change with each provincial budget — confirm before you register or file. - [Province of BC — Provincial Sales Tax](https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst) - [Province of BC — Register to collect PST](https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/register) - [CRA — GST/HST for businesses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html) General information, not advice. [Have a CPA confirm it for your situation](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) BC runs a second sales tax beside GST, with its own rules and registration and no input credits. PST is a **7% retail sales tax** on taxable goods and certain services, and whether it applies depends on what you sell, not your size. With PST reaching some professional services on **October 1, 2026**, this is the year to get it right. [GST and PST filing for Fraser Valley businesses](https://www.everstonecpa.com/blog/gst-pst-filing-fraser-valley-businesses) sets out which applies to what. **Quick answer:** You must register for BC PST if you sell or lease taxable goods in BC, or provide software, telecommunication services or certain taxable services. The general rate is 7%. Most services have been exempt, but from October 1, 2026 PST extends to specified professional services, including accounting, architectural and engineering. A small-seller exemption covers businesses with $10,000 or less in retail sales over the past 12 months. There are no input credits: PST you pay is a cost. PST is not GST with a different name. ## PST is not GST with a different name GST and PST share a checkout line and nothing else. Federal GST refunds tax on inputs through credits; provincial PST has **no ITC equivalent**, so 7% on a work truck’s accessories, tools or software is simply cost. Registration is separate too: GST status says nothing about PST. ## Who has to register You must register if, in the ordinary course of business in BC, you: - **Sell taxable goods** — retail inventory, building materials, vehicles, equipment, boats and most other tangible items; - **Lease taxable goods** — equipment, vehicles, tools, artwork; - **Provide services to taxable goods** — repair, installation and restoration work on things like vehicles and equipment; - **Provide software or telecommunication services** in BC; - **Provide legal services**, or — from **October 1, 2026** — specified professional services including **accounting, architectural, engineering** and certain security and non-residential real estate services; - **Operate an online marketplace** facilitating BC sales. Location is not a shield: out-of-province sellers soliciting BC customers can be caught, and online sales into BC are squarely in scope. **Not sure whether you should be charging PST?** We check your registration, set PST up in your books and file the returns with GST, as part of bookkeeping from $325 a month. [Get a quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) ## The $10,000 small-seller exemption If **gross revenue from all retail sales was $10,000 or less in the previous 12 months** and you expect $10,000 or less for the next 12, you can generally stay unregistered as a *small seller*, though some vendor types never qualify and small sellers pay PST on inventory. Voluntary registration lets you buy resale goods exempt, often worth it once [margins](https://www.everstonecpa.com/pricing-and-margin-analysis) matter. ## What is taxable, what is not Goods are taxable unless exempted; services historically exempt unless listed. Goods exemptions include most food, children’s clothing and some safety equipment. The services exemption for professional and personal services narrows in October 2026. Bundles of goods and services need careful allocation, since it decides how much carries 7%. ## The October 1, 2026 change: professional services BC’s extension of PST to **specified professional services** is the largest scope change in years. From October 1, 2026, accounting, architectural, engineering and certain security and non-residential real estate services become taxable. Two practical consequences for owners: your **professional fees will start carrying 7% PST** you cannot recover (unlike the GST on the same invoice). Second, if you *provide* one of those services, you have a registration and systems project to complete before the effective date — tax codes, invoices, contracts that straddle October 1, and quotes issued now for work delivered after it. Related: [CPA for plumbing, electrical and other trades contractors](https://www.everstonecpa.com/construction-accounting-bc). ## Contractors: the rule runs backwards Trades improving real property, such as framing, plumbing, roofing and electrical, generally do **not** charge PST. As **end user of the materials**, the contractor pays PST at the supplier counter, and pricing must absorb that 7%. Supply-only sales, production machinery and other contract types can differ, so confirm them. It is standard in how we set up [contractor files](https://www.everstonecpa.com/contractor-accountant). ## Filing and staying clean Registered businesses file on the province’s schedule and remit everything collected. As in good [bookkeeping](https://www.everstonecpa.com/bookkeeping-abbotsford), keep collected tax apart from revenue, reconcile before filing and never treat it as [working capital](https://www.everstonecpa.com/glossary#working-capital). With no offsetting credit, every missed PST dollar is a whole dollar. Sources - [Government of BC — Register to collect PST](https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/register) - [Government of BC — Charging & collecting PST](https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/charge-collect) - [Government of BC — Bulletin PST 003: Small Sellers](https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-003-small-sellers.pdf) This article is general information for Canadian business owners and is current as of July 2026. PST scope, exemptions and the October 2026 professional-services expansion have detailed rules and transitional provisions — confirm your specific situation. It is not tax advice; please [speak with a CPA](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) before acting on anything here. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) PST catches out businesses right across the Fraser Valley. We handle registration and filing for owners in [Abbotsford](https://www.everstonecpa.com/accountant-abbotsford), [Chilliwack](https://www.everstonecpa.com/accountant-chilliwack), [Langley](https://www.everstonecpa.com/accountant-langley), [Mission](https://www.everstonecpa.com/accountant-mission), [Maple Ridge](https://www.everstonecpa.com/accountant-maple-ridge) and [Surrey](https://www.everstonecpa.com/accountant-surrey). Common questions ## Frequently asked questions about BC PST guide **Do I charge PST on services in BC?** Most services have historically been PST-exempt, with exceptions like repairs to taxable goods, software and telecommunications. That changes materially on October 1, 2026, when BC extends PST to specified professional services — including accounting, architectural, engineering and certain security and non-residential real estate services. **What is the small seller exemption?** If your gross retail sales were $10,000 or less in the previous 12 months and you expect $10,000 or less in the next 12, you can generally qualify as a small seller and skip PST registration — though some vendor types cannot qualify regardless of sales, and registering voluntarily lets you buy resale inventory PST-free. **Is PST like GST — do I get the tax back on my purchases?** No. PST has no equivalent of GST input tax credits. PST you pay on business purchases (other than goods bought solely for resale, with an exemption certificate) is a real cost, and PST you collect is remitted in full. That asymmetry is the biggest planning difference between the two taxes. **Do contractors charge PST to customers?** Generally no — a contractor improving real property is usually treated as the end user of the materials and pays PST when purchasing them, rather than charging PST to the customer. The rules have important exceptions and depend on the contract, so trades should confirm their specific situation. **What changes for professional services on October 1, 2026?** From October 1, 2026, BC extends PST to specified professional services, including accounting, architectural, engineering and certain security and non-residential real estate services. If you buy those services, your invoices will start carrying 7% PST that you cannot recover through input credits. If you provide them, you have a registration and systems project to finish first, including tax codes, invoices and contracts that straddle the date. **Does being registered for GST mean I am registered for PST?** No. They are separate taxes with separate registrations and separate administrators. GST is federal and value-added; PST is provincial and charged at the retail stage. Holding a GST/HST number tells you nothing about your PST obligations, and many BC businesses need both. If you sell or lease taxable goods, software or telecommunication services in BC, you register for PST with the province. **Do I have to register for PST if I sell into BC from another province?** Often yes. Location is not a shield. Out-of-province sellers who solicit BC customers and deliver taxable goods, software or telecommunication services into the province can be required to register and collect. Online sales into BC are squarely in scope. A business shipping regularly to BC customers should confirm its position rather than assume distance puts it out of reach. ### Keep reading GST/HST registration guide → [Zero-rated vs exempt supplies →](https://www.everstonecpa.com/blog/zero-rated-vs-exempt-supplies-gst-hst-canada) [Accountant for contractors →](https://www.everstonecpa.com/contractor-accountant) **Run your own numbers with the free calculators:** [work out your T2 deadline](https://www.everstonecpa.com/t2-deadline-calculator) · [work out your instalments](https://www.everstonecpa.com/tax-instalment-calculator) · [run the salary-or-dividends numbers](https://www.everstonecpa.com/salary-vs-dividends-calculator) [← BC Employer Health Tax: the $1M exemption and the notch rate explained](https://www.everstonecpa.com/blog/bc-employer-health-tax-guide) [Year-End Bonus or Dividend? How Owners Decide →](https://www.everstonecpa.com/blog/bonus-vs-dividend-year-end-canada) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies by email within one business day. A one-off 45-minute **Advice Call** with a Chartered Professional Accountant is $225 plus GST, paid by secure link and credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. · Google review --- Source: https://www.everstonecpa.com/blog/bc-pst-small-business-guide Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online