If you sell anything in British Columbia and you are not sure whether you should be charging 7% PST, here is the fastest way to find out: PST is charged on things, not on profits. If what you sell is taxable and you sell it in the ordinary course of business in BC, you register, you charge, and you remit. There is no $30,000 grace period like GST. The only real escape hatch is the small seller rule, and it caps out at $10,000 a year with no commercial premises, which almost nobody with an office actually qualifies for.
The other thing worth knowing up front is that PST is not GST. You cannot claim it back. Every dollar of PST you pay on your own business purchases is a real expense that stays on your income statement forever. That single difference changes how you should be buying, quoting and structuring your business.
Below is who has to register, what is actually taxable, the exemptions people miss, and how to file without triggering an audit.
We provide a full suite of Accounting and Bookkeeping Service in Coquitlam and throughout various areas of British Columbia.
On this page
- Quick Answer: The 3 Tests That Decide If You Must Register
- PST vs GST: What Actually Makes Them Different
- The $10,000 Small Seller Threshold: How It Really Works
- What Is Taxable Under BC PST
- Common PST Exemptions Business Owners Miss
- Do You Charge PST to Customers Outside BC?
- How to Register for a BC PST Number, Step by Step
- How Often You File and When PST Is Due
- Why You Cannot Claim PST Back Like GST
- 5 PST Mistakes That Trigger a BC Audit
- Frequently Asked Questions
- Get Your PST Set Up Correctly
Quick Answer: The 3 Tests That Decide If You Must Register
Run through these in order. If you answer yes to the first two and no to the third, you must register.
| # | Test | What it means |
| 1 | Is what you sell taxable? | Goods, software, accommodation, legal services, telecommunication services, online marketplace services, related services to goods, and from October 1, 2026, accounting, engineering, architectural, security and non residential real estate services |
| 2 | Are you selling it in BC, or into BC? | You are located in BC, or you are outside BC and you target BC customers and deliver here |
| 3 | Do you qualify as a small seller? | $10,000 or less gross taxable revenue in the past 12 months and the next 12, and no established commercial premises |
There is no revenue threshold to worry about if you are a BC based business selling taxable goods or services. Your very first taxable sale is the trigger. Registration opens up to six months before that sale, so there is no reason to be late.
PST vs GST: What Actually Makes Them Different
People treat these as two versions of the same thing. They are not, and the differences cost money.
| GST | BC PST | |
| Who runs it | CRA, federal | BC Ministry of Finance, provincial |
| Rate | 5% | 7% general, with special rates on some items |
| Registration trigger | $30,000 over four consecutive calendar quarters | Your first taxable sale, no threshold |
| Can you claim it back | Yes, input tax credits | No, ever |
| Applies to services | Almost all services | Only listed services |
| Account | BN based RT account | Separate eTaxBC account |
| Filing | Monthly, quarterly or annual based on revenue | Monthly to annual based on PST collected |
The line that matters most is the recoverable one. When you buy a $3,000 laptop for your business, the $150 of GST comes back to you and the $210 of PST does not. Over a few years of equipment, software and supplies, that is real money most owners never account for in their budgets.
The $10,000 Small Seller Threshold: How It Really Works
This is the most misunderstood rule in BC PST, so here is exactly how it works.
You are a small seller only if all of the following are true:
- Your gross revenue from retail sales of eligible goods, software and services was $10,000 or less over the previous 12 months, and you reasonably expect the same over the next 12 months
- You do not sell from established commercial premises
- You are not selling vehicles, boats, aircraft, tobacco, cannabis or other restricted items in the ordinary course of business
The threshold is a rolling 12 month window, not a calendar year. The month you cross $10,000, you register.
“Established commercial premises” is broader than people assume. It includes a storefront, a mall kiosk, a flea market stall, and even a dedicated room in your house set up for making sales. Selling from such a place four or more times a year knocks you out of small seller status even if your revenue is under $10,000. Selling from a school parking lot or holding the occasional garage sale does not.
Here is the trap. Small sellers do not charge PST, but they also lose the resale exemption. That means you pay PST on your own inventory and cannot recover it. For a business with real inventory, being a small seller is often worse than registering.
What Is Taxable Under BC PST
Goods
New and used goods bought or leased in BC, plus goods brought, sent or delivered into BC for use here. If you buy equipment from an Alberta supplier who does not charge PST, you self assess and pay it yourself.
Software and Digital Products
Software is taxable, including software delivered electronically and subscription based software used on a device in BC. Telecommunication services including internet, streaming and digital media content are also taxable.
Accommodation
Short term accommodation is taxed at 8%, and many municipalities add a Municipal and Regional District Tax on top for tourism funding.
Taxable Services, Including the October 2026 Additions
Services are the exception rather than the rule under PST. The taxable list includes related services to goods (vehicle repair, furniture assembly, computer repair), legal services, telecommunication services and online marketplace services.
From October 1, 2026, the list grows considerably:
| New taxable service | Tax applies to | Effective rate |
| Accounting, bookkeeping, payroll, tax, assurance | Full fee | 7% |
| Architectural services | 30% of the fee | 2.1% |
| Engineering and geoscience services | 30% of the fee | 2.1% |
| Security services and private investigation | Full fee | 7% |
| Non residential real estate, rental and strata management | Full fee | 7% |
Marketing, IT, management consulting, HR and financial planning are still not on the list.
The Rates You Will Actually Use
| Item | Rate |
| General goods, software, legal and most taxable services | 7% |
| Accommodation | 8% plus any local MRDT |
| Liquor | 10% |
| Fossil fuel combustion systems | 12% |
| Vapour products | 20% |
| Passenger vehicles | 7% to 20% depending on value |
Common PST Exemptions Business Owners Miss
Some of these are worth a lot and get overlooked because nobody tells you about them.
- Goods purchased for resale. Give your supplier your PST number and stop paying tax on inventory. This is the single most commonly missed exemption for new retailers.
- Production machinery and equipment. Manufacturers, and businesses in software development, oil and gas, mining and logging, can buy qualifying equipment PST free.
- Exempt for all purchasers.
- Food for human consumption. Exempt, though soda and some prepared items are not.
- Children’s clothing and footwear, and used clothing under $100 per item.
- Goods shipped outside BC. If you deliver out of province and the customer takes possession there, no PST.
- Farmers, fishers and commercial aquaculturists on qualifying equipment with the right certification.
- Real property. Services to real property such as painting, roofing and plumbing are not taxable to your customer. The contractor pays PST on materials instead.
Every exemption above requires documentation. A PST number, an exemption certificate or a signed declaration on file. No paperwork means the auditor treats it as a taxable sale and you pay the tax out of your own margin.
Do You Charge PST to Customers Outside BC?
The rule is about where the goods go and where the service is used, not where you sit.
- Goods delivered outside BC, with the customer taking possession outside BC, are exempt. Keep shipping documents.
- Goods you deliver to a BC address are taxable even if the customer is headquartered elsewhere.
- If you are outside BC but inside Canada, you must register if you sell taxable goods to BC customers, accept orders from BC, deliver into BC, and solicit BC customers through advertising. There is no revenue threshold in that scenario.
- There is a second route in: if you sell into BC and your gross revenue from BC customers over the previous 12 months exceeded $10,000, you register.
- If you are outside Canada, the $10,000 BC revenue threshold applies to software and telecommunication services.
- If you are a BC buyer and your out of province supplier does not charge PST on something taxable, you must self assess. Registered businesses report it on their PST return. Everyone else files a Casual Remittance Return, form FIN 405, by the end of the following month.
That last point catches BC companies more often than any other. The liability sits with you, not your supplier.
How to Register for a BC PST Number, Step by Step
- Confirm you actually sell something taxable and that no exemption covers your main revenue lines.
- Gather your federal business number, government issued ID, incorporation documents, your total annual Canadian sales figure and your estimated monthly taxable sales.
- Register through eTaxBC. The form takes about 15 to 25 minutes.
- Allow up to 21 business days for processing. Incomplete documents make it longer.
- Set up your invoice templates and accounting software tax codes before your first taxable sale, with PST on its own line.
You can register up to six months before your first taxable sale, which is exactly what firms affected by the October 2026 professional services change should have done back in April.
How Often You File and When PST Is Due
Your reporting period is assigned based on how much PST you collect annually.
| Annual PST collected | Reporting period |
| More than $12,000 | Monthly |
| $6,001 to $12,000 | Monthly or quarterly |
| $3,001 to $6,000 | Quarterly or semi annual |
| $3,000 or less | Quarterly, semi annual or annual |
Returns and payment are due by the last day of the month following the end of your reporting period. If that lands on a weekend or BC statutory holiday, you get the next business day. Businesses with $1.5 million or more in annual Canadian sales must file electronically.
One small upside: file and pay on time and you earn a collector commission of up to $198 per reporting period. It is not much, but it is free money for doing what you were supposed to do anyway.
Why You Cannot Claim PST Back Like GST
There is no input tax credit under PST. Full stop. When your business buys taxable goods or services, you are the end user and you eat the tax.
That has three practical consequences:
- Quote with PST in mind. If your cost base includes unrecoverable PST, your pricing needs to reflect it.
- Use the resale exemption aggressively. Anything you genuinely buy to resell should never carry PST. Get your number on file with every supplier.
- Check whether you qualify for a production exemption. Manufacturers and software developers routinely leave this on the table for years.
If you are looking at your accounts and cannot tell which of your purchases carried recoverable GST and which carried permanent PST, that is a bookkeeping setup problem, and it is a fixable one. Our team at MaxPro Financials sets up BC businesses so PST and GST are coded correctly from the first transaction, which means clean returns, correct exemptions claimed, and no surprises when an auditor asks for your documentation. We also handle the registration itself if you would rather not deal with eTaxBC.
5 PST Mistakes That Trigger a BC Audit
| Mistake | Why it gets caught |
| Never self assessing on out of province purchases | Auditors compare your purchase ledger against your PST returns. A business with zero self assessed PST and out of province suppliers is an obvious flag. |
| Claiming resale exemptions without documentation | No PST number or certificate on file means the exemption is disallowed and you pay the tax yourself. |
| Taking goods out of resale inventory for business use | Using inventory in your own operations makes it taxable. This is the classic retailer audit finding. |
| Not charging PST on delivery | Delivery charges are generally part of the taxable purchase price unless the goods themselves are exempt or the customer had a genuine third party option. |
| Bundling taxable and exempt services for one price | BC’s bundled sales rules usually push the whole amount into the taxable column. Bill separately. |
Keep records for five years. That is the standard audit window and BC uses it.
Frequently Asked Questions
Do I need both a GST and a PST number?
Yes, if both apply. They are entirely separate systems. GST is a federal RT account under your business number. PST is provincial and registered through eTaxBC. Having one gives you nothing toward the other.
Do contractors charge PST on labour?
Generally no. Services to real property such as painting, roofing, plumbing and electrical work are not taxable to your customer. Instead, the contractor pays PST on materials at purchase and builds that cost into the price. The exceptions are retail sales of goods, items that do not become part of real property, and work done off site.
What happens if I registered late?
BC assesses the PST you should have collected against you, whether or not you actually collected it from your customers. Add penalties and compounded monthly interest. If you find the problem yourself, register and disclose it. Voluntary correction is always cheaper than being found.
Do I charge PST on shipping?
Usually yes. Delivery charges normally form part of the taxable purchase price. They are exempt if the goods themselves are exempt, if the customer genuinely had the option of picking up or using their own carrier, or if the goods are leaving BC.
Is PST charged on top of GST?
No. Both taxes are calculated on the selling price, not on each other. A $1,000 sale carries $50 GST plus $70 PST for $1,120 total, not tax on tax.
Do I charge PST to a customer in Alberta?
Not if the goods are delivered to Alberta and the customer takes possession there. Keep the shipping documentation. If the Alberta customer picks up in BC, PST applies.
Can I get a refund of PST I paid by mistake?
Yes. Ask your supplier first, since they can usually credit it directly within their own adjustment window. Otherwise apply to the province using the general refund application. You generally have four years from the date of payment.
Do I have to register if I only sell exempt goods?
No. If everything you sell is exempt, there is nothing to collect and nothing to register. Just be certain the exemption really covers your entire product line.
Do I charge PST on consulting or marketing services?
No. Management consulting, marketing, IT and HR services are not on the taxable services list, and the October 2026 expansion did not add them.
My sales are seasonal and I crossed $10,000 in one busy month. Now what?
You register. The small seller test is a rolling 12 month window, so a single busy season that pushes you over the line ends your small seller status. Register as soon as you can reasonably see it coming.
Get Your PST Set Up Correctly
Most PST problems are not complicated. They are just expensive when they sit unfixed for two or three years and then surface in an audit with penalties and compounded interest attached.
MaxPro Financials handles PST and GST registration, exemption documentation, invoice and software setup, monthly bookkeeping and filing for businesses across BC. If you are starting out, if you just realised you should have registered a while ago, or if you simply want someone to confirm your setup is right before the October 2026 changes land, book a consultation and we will walk through it with you.