BC is expanding Provincial Sales Tax to certain professional services starting October 1, 2026. If you sell affected services, you may need to register for PST, update invoicing, adjust contracts, and make sure your bookkeeping and filing process is ready before the switch happens. The Province’s notice sets out the change, the effective date, and the core requirements.
This guide breaks down what is changing, who it affects, and how to get ready before October 1, 2026.
What is changing, and when it starts
The Province of BC announced an expansion of PST to certain professional services. PST will apply at 7% effective October 1, 2026, to the services listed in the Province’s Notice 2026-001.
The notice specifically lists:
- Accounting services, including bookkeeping and assurance services
- Architectural services
- Engineering and geoscience services
- Security services, including private investigation services
- Non-residential real estate services, including trading services, rental property management services, and strata management services
There is also a special note in the notice: PST on architectural, engineering, and geoscience services applies to 30% of the purchase price of those services.
Who this applies to
If you sell one of the services listed above on or after October 1, 2026, the Province says you will be required to charge and collect PST, unless a specific exemption applies.
That affects more than “tax.” It changes:
- your invoicing and quotes
- your contracts and pricing language
- your accounting and sales tax reporting workflow
- how you communicate costs to clients
It also affects businesses that buy these services, because they may see PST added where it did not exist before, which can trigger questions about budgeting and vendor setup.
Registration, and why you should not wait until October
If you are not already registered, the notice states you will be required to register for PST if you will be selling newly taxable services. You can register up to six months before your first taxable sale, and the Province recommends registering as soon as possible. The notice gives a clear example: if you will start selling newly taxable services on October 1, 2026, you can register as of April 1, 2026.
This matters because the real-world work happens before registration:
- confirming whether your services are in scope
- determining what your invoices should look like
- mapping where PST will be charged in your billing system
- training staff so it is applied consistently
- setting up reporting so filings are not a scramble
PST is not GST/HST, and businesses mix them up
Many BC businesses already handle GST. PST is separate, with different registration, collection, and reporting mechanics. A common failure point is charging the wrong tax, charging tax at the wrong time, or charging tax but not setting up the back-end reporting to remit correctly.
On the federal side, CRA rules can also apply if you need to register for and charge GST/HST. If you are unsure when you must register and start charging GST/HST, CRA guidance is here: When to register for and start charging the GST/HST.
For broader operational GST/HST guidance, CRA’s registrant guide is here: General Information for GST/HST Registrants.
You do not need to become a sales tax expert, but you do need your systems to charge the correct tax, on the correct base, at the correct time.
What RHN can do for you
This change is manageable if you treat it like a project with a checklist. RHN can help you handle the full transition, or just the parts you want off your plate.
1) Confirm whether you are in scope
The Province lists categories, but real businesses have mixed offerings. RHN can review your services and invoice patterns to confirm what is taxable, what is not, and what needs clarification before you change anything.
2) Build a clean invoicing approach
If PST applies, your invoices need to be consistent. RHN can help you decide:
- how PST should appear on invoices and quotes
- how to handle deposits, retainers, and milestones
- how to handle bundled services, if you sell more than one type
- how to avoid under-collecting PST, which can make you liable for tax you did not charge
3) Register and set up reporting
Registration is not the hard part, staying compliant is. RHN can help you register at the right time, then set up a simple monthly or quarterly workflow so PST filings are predictable.
4) Align bookkeeping so filings are painless
If you charge PST but your books do not track it cleanly, it becomes a year-end mess. RHN can map your chart of accounts, set up sales tax codes, and ensure your reporting matches your filing requirements.
5) Update your billing process and paperwork
Before October 1, 2026, update your quotes, invoices, and any standard terms so PST is charged correctly and consistently. If you want, RHN can provide suggested invoice wording and a simple checklist for your team that explains:
- what is changing
- when it starts
- how invoices will look going forward
- what clients should expect for budgeting
This reduces billing disputes and speeds up collections.
What to do next
If you provide professional services in BC, do not wait until September 2026. The smart move is to:
- Confirm whether your services fall under the listed categories.
- Decide how you will handle pricing and invoicing.
- Schedule registration timing, especially if you are not currently registered, since the Province allows registration up to six months before your first taxable sale.
- Set up the bookkeeping and reporting workflow before the first PST invoice goes out.
If you want help staying compliant and planning ahead, reach out to RHN today for guidance on BC PST changes and how to optimize your business.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.
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