The Government of British Columbia (BC) in Canada is set to apply provincial sales tax (PST) on certain professional services from next month.
A 7% PST rate will apply to accounting services, including bookkeeping and assurance services, from 1 October.
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Architectural, engineering, geoscience, security and non-residential real estate services will also be subject to the PST. However, for architectural, engineering and geoscience services, the 7% PST will apply to only 30% of the total service fees.
BC’s budget, released in February, said the addition of these professional services to the PST base would “increase provincial revenue by updating taxes” and would be “generally consistent with how tax applies to these services in most provinces”.
The measures are intended to support the province’s fiscal position and bring its tax approach closer to that used elsewhere in Canada.
In July 2026, the BC Government issued updated regulations to support the wider PST scope, setting out restrictions, exemptions and administrative details.
However, the regulations are yet to be incorporated into the Provincial Sales Tax Exemption and Refund Regulations.
The provincial government has also published guidance for the five professional service sectors affected by the changes.
According to EY, businesses providing or purchasing these professional services should ensure their internal operations comply with the incoming regulations.
Organisations must first identify which service lines fall under the expanded rules and determine whether and when PST registration is required.
Preparations should also include confirming adherence to transitional rules, and updating invoicing and billing systems to handle tax calculations.
Additionally, the companies are advised to review contract items, including pricing, tax clauses and billing practices, for the new taxable services.
