Budget 2026 introduces one of the most significant tax shifts BC businesses have seen in years: the expansion of the Provincial Sales Tax (PST) to a wide range of professional services. These are services almost every business relies on, including accounting, engineering, security, and property management.

The provincial government explains the change by noting that BC’s economy has become increasingly service based, yet many of those services have never been subject to PST. The result is a major structural change that will affect costs, competitiveness, and administrative requirements across the business community.

Below is a breakdown of what is changing and how to prepare.

What Changes on October 1, 2026

A 7 percent PST will now apply to several professional services that were previously untaxed:

• Accounting and bookkeeping: 7% on the full fee.
• Architectural services: 7% applied to 30% of the fee.
• Engineering and geoscience services: 7% applied to 30% of the fee.
• Security and private investigation services: 7% on the full fee.
• Rental property and strata management: 7% on the full fee.
• Non‑residential real estate commissions: 7% on the full fee.

What This Looks Like in Practice

Every business will feel this differently. Here are a few real‑world examples:

Retailers: Bookkeeping and security services will now include a 7% PST charge. Because PST is non‑refundable, this becomes a direct cost increase.
Property managers: Strata and rental management services are now taxable. Whether you absorb the cost or pass it on, your financial model shifts.
Developers: Engineering and architectural fees, which are often major project expenses, now include PST. Even partial taxation compounds quickly on large builds.
Professional service providers: Accountants, engineers, architects, and others must now register for PST, charge it to clients, and remit it. This adds new administrative obligations for businesses of all sizes.

What It Means for Your Business

A cost you cannot recover.
Unlike GST and HST systems in other provinces, BC’s PST is non‑refundable. Businesses cannot claim it back. This means the tax accumulates at every stage of production or service delivery. Many refer to this as a tax on a tax.

A hit to competitiveness.
Alberta has no provincial sales tax. HST provinces allow businesses to recover what they pay. BC already has one of the least competitive sales tax structures in Canada, and this expansion increases that gap.

New administrative obligations.
If you provide newly taxable services, you must register for PST, charge it, collect it, and remit it. This applies to sole proprietors, small firms, and large companies.

What to Do Next

Here are the steps businesses should take before October 1:

If you provide newly taxable services: PST registration opens April 1, 2026. Begin preparing now.
Review your contracts: PST applies based on when services are performed, not only when they are invoiced.
Model the cost impact: Understand how these new taxes affect your bottom line, especially if you rely heavily on accounting, engineering, or security services.
Share your experience: Your Chamber is your voice. Member feedback directly informs the BC Chamber’s advocacy and ongoing discussions with government.

We Are Here to Support You

The Ridge Meadows Chamber of Commerce will continue monitoring the rollout of these changes and advocating for a competitive business environment in our region. If you have questions, concerns, or examples of how this impacts your operations, we want to hear from you.

Your voice strengthens our advocacy and ensures local business perspectives remain central in BC’s policy decisions