B.C. PST Changes Coming October 1, 2026: What Businesses Need to Know

A significant change to B.C.’s Provincial Sales Tax is coming this fall.

Beginning October 1, 2026, the Province of British Columbia is expanding its 7% PST to a number of professional services that were previously not subject to the tax.

For many B.C. businesses, that means services they already purchase every month are about to become more expensive.

Here’s what is changing, who it affects, and what business owners should know before October 1.

What is changing on October 1?

B.C. is expanding PST to several categories of professional services, including:

• Accounting services, including bookkeeping and assurance
• Architectural services
• Engineering and geoscience services
• Security services, including private investigation
• Certain non-residential real estate services

Accounting and bookkeeping services will generally be subject to 7% PST on the taxable purchase price.

Architectural, engineering and geoscience services are treated somewhat differently. The 7% PST applies to 30% of the purchase price of those services.

The Province announced the expansion as part of Budget 2026.

Read the Province of B.C.’s professional services notice

What counts as an accounting service?

The definition is broader than many businesses may expect.

Under B.C.’s new rules, accounting services can include activities such as:

• Bookkeeping
• Preparing accounting records
• Account reconciliation
• Billing
• Assurance and audit work
• Financial and management accounting
• Tax accounting
• Certain tax advice, document preparation and representation

That means the change isn’t limited to traditional accounting firms or CPA services. Businesses providing taxable bookkeeping and related services can also fall under the new rules.

View B.C.’s detailed guidance on PST and accounting services

What does this mean for businesses buying these services?

The most immediate impact is simple: your costs may increase.

If your business currently spends $1,000 per month on taxable bookkeeping or accounting services, for example, 7% PST would add $70 to the monthly cost.

Across a year, that’s an additional $840 in operating expenses.

And bookkeeping may only be one affected service your business purchases.

Companies that regularly use architects, engineers, commercial property managers, security providers or other affected professionals should review their budgets before October.

This is especially worth considering when forecasting:

• Monthly operating expenses
• Project costs
• Construction and development budgets
• Professional service retainers
• Cash flow
• Long-term contracts

What does this mean for Agile clients?

For Agile clients in British Columbia, applicable bookkeeping services will become subject to PST beginning October 1, 2026, as required by the Province.

That means you will begin seeing PST added to applicable Agile invoices.

We’ll handle the required changes to our invoicing. Clients do not need to register for PST simply because Agile begins charging it.

Your own PST obligations will depend on what your business sells or provides.

What if my accountant or bookkeeper is outside B.C.?

This is one of the more important parts of the change.

Using a service provider located outside British Columbia does not necessarily mean the service is exempt from B.C. PST.

If a B.C. business purchases accounting services from outside the province and those services relate to its B.C. operations, the services can still be subject to PST.

If the supplier does not collect the applicable tax, the B.C. purchaser may be required to self-assess and remit it directly to the Province.

For businesses operating in multiple provinces, services relating partly to B.C. and partly to another jurisdiction may be apportioned based on a reasonable estimate of the portion relating outside B.C.

Businesses with operations across Canada should review this carefully.

Are there exemptions?

Yes. The Province has introduced a number of specific exemptions and exclusions.

Depending on the situation, these may include rules relating to:

• Services connected to jurisdictions outside B.C.
• Certain services involving estates
• Services between some related corporations
• Accounting services purchased solely for resale
• Certain reasonable document transmission, printing and copying charges
• Some travel, food and accommodation disbursements

The details can become technical quickly, so businesses with unusual arrangements should review the Province’s guidance or speak with their tax advisor.

What about work happening around October 1?

B.C. has introduced transitional rules for services that cross the October 1 implementation date.

In general, if payment for accounting services becomes due or is paid before October 1, 2026, and the services are provided entirely before December 1, 2026, PST may not apply.

For example, the Province explains that accounting services for October and November that are billed before October 1 may qualify for transitional treatment.

However, different rules can apply when services continue beyond November 30 or when an invoice becomes due on or after October 1.

Businesses with large projects, retainers or contracts crossing the implementation date should review the transitional rules rather than assuming the invoice date or service date alone determines the answer.

Review B.C.’s accounting services and transitional rule guidance

If you provide one of these services, what should you do?

Businesses selling newly taxable professional services should prepare before October 1.

Start by determining whether the services you provide fall within the new rules.

If they do, review whether you need to:

• Register to collect and remit PST
• Update your invoicing or accounting software
• Add PST to quotes and proposals
• Review existing contracts
• Update pricing or project budgets
• Communicate the change to customers
• Determine whether any exemptions apply
• Review contracts that cross the October 1 implementation date

The Province recommends that affected providers register as soon as possible if they have not already done so.

Register to collect B.C. PST

What should businesses buying professional services do?

Even if you aren’t required to collect PST yourself, the change can still affect your business.

Before October 1:

• Review the professional services your business purchases regularly.
• Identify which services will become taxable.
• Update your budgets and cash-flow forecasts.
• Review major contracts or projects that cross the October 1 date.
• Pay particular attention to services purchased from outside B.C.
• Make sure your bookkeeping correctly records the new PST amounts.

Concerned about the impact on your business?

The expansion means another cost for many businesses at a time when operating expenses are already under pressure.

Business organizations in B.C. have also raised concerns about the effect of the expansion on administrative burden, project costs, competitiveness and investment.

If you are concerned about how the change affects your business, consider sharing that feedback directly with your local MLA.

Changes like this are easier for policymakers to understand when business owners explain the real-world impact.

Find your local B.C. MLA

Official B.C. government resources

Because PST rules depend on the type of service, location, timing and individual circumstances, the Province’s official guidance should be the primary reference.

• Notice to providers of professional services:
  
  B.C. Professional Services PST Notice
  
• PST on accounting services:
  
  Accounting Services Guidance
  
• PST registration:
  
  Register to Collect PST
  
• Budget 2026 tax changes:
  
  B.C. Budget Tax Changes
  
• Legislation:
  
  Budget Measures Implementation Act, 2026
  

The bottom line

The October 1 PST expansion affects more than accounting firms.

It affects businesses across B.C. that buy bookkeeping and professional services, businesses that provide those services, and businesses using professional service providers outside the province.

The best thing you can do now is understand where the new tax applies, account for the added costs and make sure your systems are ready before October 1.

At Agile, we’ll continue monitoring the Province’s guidance as the implementation date approaches and will keep our clients updated on anything that materially affects their bookkeeping or invoices.

This article is provided for general informational purposes only and is not tax or legal advice. PST treatment can depend on your specific circumstances. Refer to the Province of British Columbia’s guidance or consult a qualified tax advisor regarding your obligations.