BC Was Going to Add PST to Accounting and Engineering Bills on October 1. Then It Didn't

· RKube Services

BC paused the October 1, 2026 PST expansion to accounting, engineering and other professional services. What changed, what didn't, and what to do if you registered.

For most of 2026, professional firms in British Columbia were getting ready for a new tax. Budget 2026 said the 7% Provincial Sales Tax (PST) would start applying to accounting, bookkeeping, engineering, architecture, geoscience, security and non-residential real estate services on October 1, 2026. Firms registered for PST accounts, updated their invoicing software and told clients to expect a higher bill.

Then, two weeks before the start date, the Province paused it. If you run one of these businesses in Vancouver, Victoria, Kelowna or anywhere else in BC, here's what changed for 2026, what didn't, and what to do if you already registered or already charged PST.

Everything below comes from BC government sources: Notice 2026-001, Notice to providers of professional services (last updated September 21, 2026), the Province's September 18, 2026 news release, and the sales taxes updates page.

The short version

  • The expansion is paused. PST does not apply to the listed professional services from October 1, 2026. The exemption stays in place.
  • No new date. The government hasn't set one. It tied the delay to the end of the current international trade disruptions.
  • Registered for PST just for these services? Notice 2026-001 says you should cancel the account through eTaxBC or by calling 1-877-388-4440.
  • Other October 1 changes did go ahead. Basic cable TV, residential landline and toll-free phone services, clothing patterns and related materials, and services to clothing and footwear became PST taxable.
  • GST is unchanged. Professional services in BC still carry 5% GST once you're past the $30,000 small supplier line.

What was supposed to happen

Budget 2026, implemented through Bill 2, the Budget Measures Implementation Act, 2026, set out to extend PST at 7% to these services effective October 1, 2026:

  1. Accounting services, including bookkeeping and assurance.
  2. Architectural services.
  3. Engineering and geoscience services.
  4. Security services, including private investigation.
  5. Non-residential real estate services, including trading, rental property management and strata management.

For architectural, engineering and geoscience services, PST would have applied to only 30% of the purchase price. On a $10,000 engineering invoice, that's PST on $3,000, or $210, an effective rate of 2.1%. Accounting, security and non-residential real estate would have been taxed on the full price.

The BC government published guidance through the summer, and a July 9 update confirmed the October 1 start. Plenty of firms acted on it.

What changed in September

On September 18, 2026, the Office of the Premier announced that the PST expansion to professional services was paused, citing new and ongoing international trade disruptions and the economic uncertainty that comes with them. The release says the pause will be done through a temporary regulation, and the PST exemption stays in place for:

  • accounting and bookkeeping,
  • architectural services,
  • geoscience and engineering services,
  • non-residential real estate commissions and services, and
  • security and private investigation services.

The government estimated the pause would save people, local governments and businesses about $260 million in 2026-27.

Notice 2026-001, updated September 21, put it in one line for providers: the expansion of PST to these services is paused.

How long is the pause?

Neither the notice nor the release gives an end date. The release links the delay to the end of the trade dispute, which means a future budget or regulation could bring the expansion back. Treat it as postponed, not cancelled, and watch the notice page for updates. One date matters here: BC holds a provincial general election on October 24, 2026 (Elections BC), and the government news site isn't being updated during the campaign, so check Notice 2026-001 again after the vote before you change your invoices.

Old guidance is still out there

Some BC government pages written before the pause, including an FAQ entry dated September 2, still describe accounting services as taxable from October 1. The sales taxes updates page itself flags that the older entry predates the pause. When pages disagree, go with Notice 2026-001 and the September 18 release, which are the latest word.

If you registered for a PST account

Many firms registered over the summer so they'd have a PST number in time for October invoices. Notice 2026-001 tells them what to do: if you registered for a PST account, you should cancel it using eTaxBC or by calling 1-877-388-4440.

Before you cancel, check one thing. If your business sells anything else that is PST taxable in BC (goods, software, or one of the services that did become taxable on October 1), you may still need the account for those sales. Cancelling only makes sense if you registered solely because of the professional services expansion.

The Ministry's contact line for questions is 1-877-388-4440 toll-free (or 1-250-410-0373), or [email protected], Monday to Friday, 8:30 am to 4:30 pm.

If you already charged PST to clients

The notice doesn't say how to handle PST that was charged on professional services invoices dated on or after October 1, and we won't guess at a rule it doesn't state. What's clear is that the service is exempt, so the tax shouldn't have been charged. Practical steps:

  1. Turn PST off in your invoicing or accounting software for these services today.
  2. Pull a list of every invoice dated October 1 or later that showed PST, with the client and amount.
  3. Contact the Ministry at the number above before you file anything, and ask how to report and return PST collected in error, and in what order to do it relative to cancelling your account.
  4. Tell affected clients in writing and issue corrected invoices or credit notes once you know the process.
  5. Keep the records with your PST file, including the corrected invoices.

If you collected tax and kept it without remitting or refunding it, that's the situation to fix first.

If you bought these services

For clients of accounting, engineering, architecture, security or commercial real estate firms: you shouldn't see BC PST on invoices for these services dated October 1, 2026 or later. If you did, ask the provider for a corrected invoice. GST at 5% will still appear if your provider is GST registered.

The October 1, 2026 PST changes that did happen

The pause covers only the professional services. According to the sales taxes updates page, these changes took effect on October 1, 2026:

  • Clothing patterns and related materials are no longer exempt from PST.
  • Services to clothing or footwear became taxable, except for exempt protective clothing or footwear.
  • Basic cable TV, residential landline telephone and toll-free telephone services are no longer exempt. A July 13 telecommunications update covers transitional rules for billing periods that straddle October 1.
  • Dry-cleaning, wet-cleaning and laundry services became exempt, even when bundled with a taxable related service. That one went the other way.

If you run a tailoring or alteration shop, a fabric store, or a telecom reseller in BC, those changes apply to you even though the professional services change doesn't.

What hasn't changed for professional firms

GST still applies. BC has GST at 5% (federal, through the Canada Revenue Agency) and a separate PST (provincial, through eTaxBC). The pause affects only PST. Once your worldwide taxable supplies pass $30,000 in a single calendar quarter or over four consecutive quarters, you register for GST and charge 5% on your services. CRA's rules for that are on its page When to register for and start charging the GST/HST.

PST on what you buy. Being exempt on your services doesn't change PST on your own purchases. Taxable goods and software your firm buys for its own use still carry 7% PST from the seller.

Other PST you might collect. If your firm also sells taxable goods or software in BC, the usual PST rules apply to those sales, including the small seller exemption for qualifying businesses with $10,000 or less in retail sales.

A worked example

Say you run a three-person bookkeeping practice in Burnaby. Here's how the year played out:

  1. July: Budget guidance says PST starts October 1. You register for a PST account through eTaxBC and set your software to add 7% to monthly bookkeeping fees from October 1.
  2. September 18: the Province pauses the expansion. You turn PST off in your software before any October invoices go out.
  3. October: your invoices show GST at 5% (you're GST registered) and no PST. A $1,200 monthly fee is $1,260 with GST, not $1,344 with both taxes.
  4. Account: you sell nothing else that's PST taxable, so you cancel the PST account through eTaxBC, as Notice 2026-001 says.
  5. Watch list: you check the notice page each quarter and before the next BC budget in case a new date is announced.

Now say you'd already sent five October invoices with PST before you caught it. You'd list those five, call the Ministry before cancelling the account to ask how to return the tax, then issue credit notes to the five clients.

A checklist for BC professional firms

  1. Stop charging PST on accounting, bookkeeping, engineering, architecture, geoscience, security and non-residential real estate services.
  2. Find any October invoices that already carry PST.
  3. Call the Ministry (1-877-388-4440) if you collected any, before you cancel.
  4. Cancel the PST account through eTaxBC if you registered only for these services.
  5. Keep charging GST at 5% if you're registered.
  6. Check other October 1 changes if you also sell clothing services, patterns or telecom.
  7. Watch Notice 2026-001 for a new date.

Common questions

Is there PST on accounting services in BC? No. The expansion that would have started October 1, 2026 is paused, and accounting and bookkeeping services remain exempt.

Is there PST on engineering or architectural services in BC? No. The expansion is paused for architectural, engineering and geoscience services too. Had it gone ahead, PST would have applied to 30% of the price.

When will PST on professional services start in BC? No new date has been announced. The government tied the delay to the end of current trade disruptions.

I registered for a PST account for my professional services. What now? Notice 2026-001 says to cancel it through eTaxBC or by calling 1-877-388-4440. Keep it if you also make other PST-taxable sales.

What if I already charged PST to clients? The notice doesn't say. Stop charging it, list the invoices and contact the Ministry about returning the tax before you cancel your account.

Do I still charge GST in BC? Yes. GST at 5% applies to taxable services once you're past the $30,000 small supplier threshold. The pause affects only PST.

What PST changes did happen on October 1, 2026? Basic cable TV, residential landline and toll-free telephone services, clothing patterns and related materials, and services to clothing and footwear became taxable. Dry-cleaning and laundry services became exempt.

This guide is general information about BC PST as of October 2026, not legal or tax advice for your situation. The pause is temporary and the rules may change, so confirm current rules with the BC Ministry of Finance before you file or cancel an account.

We track BC's PST changes for the professional firms whose books and GST/PST returns we handle: rkubeservices.com.

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