\nthe Provincial Sales Tax Act (“PSTA”). According
\nto the released Fiscal Plan<\/a>, effective October 1, 2026, the PST
\nwill be expanded to the following professional services:<\/p>\n
\nAccounting and bookkeeping
\n
\nArchitectural, engineering, and geoscience services (PST
\napplying to only 30% of the purchase price of these services)
\n
\nRental property and strata management services
\n
\nCommissions related to buying and selling non-residential real
\nestate
\n
\nSecurity and private investigation services
<\/p>\n
Effective the same date, the PST exemption for the following
\ngoods and services will also be eliminated:<\/p>\n
\nClothing patterns, yarn, natural fibres, synthetic thread and
\nfabrics commonly used to make or repair clothing
\n
\nServices related to clothing and footwear, basic cable
\ntelevision services, toll-free telephone services and residential
\nlandline telephone services
<\/p>\n
The PSTA and regulations will also be amended to enable sellers
\nof goods to provide point-of-sale exemption or refunds to
\nbusinesses purchasing goods for use outside of BC. To qualify,
\npurchasers will need to provide evidence that the goods are being
\nshipped outside of BC for business use.<\/p>\n
Why Do I Care?<\/p>\n
The announcement appears to continue BC’s recent expansion
Businesses that provide the newly listed services will need to
The removal of exemptions for clothing and footwear related
Takeaways<\/p>\n BC’s continued expansion of its PST base to varied
Experienced Indirect Tax Counsel can help unpack these issues
\nof PST into services, following the extension of PST to cloud-based
\nservices as part of the 2024 Budget (see our prior blog here<\/a>).<\/p>\n
\nregister to collect and remit PST. BC has indicated that more
\ninformation will be made available before the taxes come into
\neffect.<\/p>\n
\ngoods and services will align their tax treatment more closely with
\ncomparable goods and services in other provinces. Meanwhile, the
\nremoval of exemptions for basic cable and telephone services is
\nframed as a fairness measure, given that alternatives to these
\nservices are currently taxable in BC.<\/p>\n![\"1750694a.jpg\"\/](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/02\/1750694a.jpg\")
<\/p>\n
\nprofessional services and goods commonly sold into the province
\nthrough Internet-based supply chains will undoubtedly create
\nregistration and compliance issues for those outside the province
\nselling into it.<\/p>\n
\nand get onside with new (and old) BC compliance problems.<\/p>\n