BC PST Overview

Definition

British Columbia Provincial Sales Tax (PST) is a 7% retail sales tax imposed under the Provincial Sales Tax Act (BC) on the retail purchase or lease of tangible personal property and on a narrowly defined list of taxable services acquired for use in the province. Unlike the five HST provinces, BC has not harmonized with the federal Goods and Services Tax (GST). Vendors charge GST at 5% and PST at 7% as two separate line items on the invoice, and the two taxes are remitted to different governments: GST to the Canada Revenue Agency and PST to the BC Ministry of Finance through eTaxBC.

Key rules

• The standard PST rate is 7%. Higher rates apply to specific items, including 10% on liquor, 8% on short-term accommodation (plus 3% MRDT in many municipalities), and 7% to 20% on passenger vehicles depending on purchase price and fuel type.
• PST is a single-stage tax. Unlike GST, there is no input tax credit mechanism. PST paid on business inputs (with limited exceptions for resale and production machinery) stays as a cost of doing business.
• PST applies only to taxable goods and the specific services listed in the Act (see ). Most professional services remain exempt until the October 1, 2026 expansion takes effect.
• PST registration is required for vendors located in BC who sell taxable goods or services, and for certain out-of-province sellers who exceed $10,000 in annual BC sales.
• Returns are filed monthly, quarterly, semi-annually, or annually through eTaxBC, with frequency assigned based on expected PST collections.

Example

A Vancouver-based consulting corporation buys a $2,000 laptop in March 2026 from a local computer store. The invoice shows $2,000 subtotal, $100 GST (5%), and $140 PST (7%), for a total of $2,240. When filing GST, the corporation claims a $100 Input Tax Credit, recovering the full GST. The $140 PST, however, is non-recoverable and is capitalized into the cost of the asset (total capital cost $2,140 before GST recovery adjustment), then depreciated under the applicable CCA class.

Common mistakes

• Assuming BC uses HST because Ontario does. BC repealed HST in 2013 and reverted to GST plus PST.
• Treating PST like GST and claiming "input tax credits" for PST paid. PST has no ITC system; the only recoveries available are specific exemptions claimed at purchase (for example, goods purchased for resale under a valid PST number).
• Charging PST on exempt professional services (consulting, software development, design) when the engagement does not fall within the Act's enumerated taxable services.
• Forgetting to self-assess PST on taxable goods brought into BC from an out-of-province vendor who did not collect PST at source.

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