B.C. Expands PST to Selected Professional Services: What Businesses Need to Know
The Province of British Columbia has announced upcoming changes to the Provincial Sales Tax (PST) that will affect several professional services beginning October 1, 2026. The changes were introduced as part of the province’s 2026 budget and will expand the PST base to include services that were previously exempt.
What Is Changing
Currently, most goods in B.C. are subject to 7% PST, while many professional services have historically been exempt. Under the new rules, PST will apply to several additional services, including:
Accounting and bookkeeping services
Architectural services
Engineering and geoscience services
Rental property and strata management services
Commissions related to buying or selling non-residential real estate
Security and private investigation services
In most cases, the standard 7% PST rate will apply. However, for architectural, engineering, and geoscience services, the tax will apply to 30% of the purchase price of the service rather than the full amount.
What This Means for Businesses
Businesses that provide these services will generally be required to register for PST, charge the tax on invoices, and remit it to the province, similar to how PST is already handled for many goods and taxable services.
For companies that purchase these services, the change may increase operating costs slightly when working with accountants, engineers, or other professional service providers. Some industry groups have raised concerns that the added tax could increase expenses for businesses and projects across the province.
The provincial government notes that expanding PST to certain professional services aligns B.C. more closely with other provinces, where similar services are already taxed.
Why the Province Is Expanding PST
The PST changes are part of broader fiscal measures in the provincial budget aimed at increasing revenue and maintaining funding for key public services. Analysts estimate the changes are part of a wider package of tax measures introduced to address provincial budget pressures and deficits.
What Local Businesses Should Do
With the changes taking effect in October 2026, businesses that provide affected services should begin preparing by:
Reviewing whether their services fall under the new PST rules
Determining if they must register to collect PST
Updating billing systems and invoicing practices
Consulting with their accountant or tax professional to ensure compliance
For businesses in communities like Sicamous and across the Shuswap Region, staying informed about provincial tax changes can help avoid surprises and support smoother financial planning.
The Sicamous & District Chamber of Commerce will continue to share updates on policies and regulations that may impact local businesses, entrepreneurs, and service providers.
