British Columbia Clients: PST on Accounting Services Effective October 1, 2026
Overview
The Government of British Columbia has announced that Provincial Sales Tax (PST) will apply to many accounting services effective October 1, 2026.
As a result, BC residents and businesses receiving accounting services may have new PST obligations, even when the accounting firm providing the services is located outside of British Columbia.
How This Affects Our Clients
Our firm operates outside British Columbia and, based on current guidance from the BC Ministry of Finance, is not required to register for, collect, or remit BC PST.
However, this does not necessarily mean that PST is not payable on the accounting services we provide to our BC clients.
Where accounting services are taxable under the new rules, BC clients may be required to self-assess and remit the applicable PST directly to the BC Ministry of Finance.
Services Potentially Subject to PST
The new rules generally apply to accounting services provided to a person who resides, ordinarily resides in British Columbia when the services relate to:
- Real property located in BC;
- Tangible Personal Property located in or delivered to BC;
- Other property owned, possessed, or used in BC;
- A physical or legal presence in BC;
- Any activities or transactions occurring in BC; or
- Business activities or ventures in BC.
As a result, many accounting, tax, advisory, and compliance services provided to BC businesses may fall within the scope of the new PST rules.
Why PST Will Not Appear on Our Invoices
The BC Ministry of Finance has confirmed that out-of-province accounting firms are only required to register and collect PST if they are considered to be located in BC.
Generally, a firm is considered to be located in BC if it has:
- A physical office or other place of business in BC;
- Employees or agents physically located in BC; or
- Management and control exercised from BC.
Our firm does not meet these criteria and therefore is not required to charge PST on our invoices.
Client Self-Assessment Requirement
Although PST will not be charged on our invoices, BC clients may still be responsible for reporting and remitting PST directly to the Province of British Columbia on taxable accounting services received from our firm.
Recommended Actions
We encourage our BC clients to:
- Review whether the accounting services they receive are subject to the new PST rules.
- Update their accounting procedures to ensure any required PST is properly reported and remitted after October 1, 2026.
- Monitor future guidance from the BC Ministry of Finance, as additional clarification may be released before the effective date.
While our firm is not required to register for or collect BC PST, the expansion of PST to accounting services may create new tax obligations for British Columbia clients. Clients should evaluate whether they are required to self-assess and remit PST on accounting services received from out-of-province providers beginning October 1, 2026.
If you have questions regarding how these rules may apply to your specific circumstances, please contact our office.