Proposed PST changes
- The budget proposes that the following services will be subject to PST effective Oct. 1, 2026:
- Accounting services, including bookkeeping and assurance services
- Architectural services
- Engineering and geoscience services
- Non-residential real estate services, including trading services, rental property management services, and strata management services
- Security services, including private investigation services
- Under the proposed legislation, the PST on architectural, engineering and geoscience services will apply to 30% of the purchase price of those services. Further details will be provided by the Ministry of Finance on exemptions and other administrative matters.
- If not already registered, businesses providing these services will be required to register prior to Oct. 1 to ensure they are ready to begin collecting and remitting tax. Businesses requiring registration as a result of these changes may do so beginning April 1.
- In addition, PST exemptions are proposed to be removed effective Oct. 1 for:
- clothing patterns, yarns, fibres, and fabric in the making or repair of clothing;
- services related to clothing/footwear (excluding basic laundry);
- basic cable television services; and
- residential landline and toll-free telephone services.
- Effective Feb. 18, the PST regulations are amended to enable vendors to provide a point-of-sale exemption to businesses that are purchasing goods for commercial use outside of the province, where the buyer ships the goods from B.C. after purchase. Previously, the exemption was available only when the vendor shipped the goods out of province.
Other taxes
In addition to the PST changes noted above, proposed changes were also announced in the budget to:
- Income tax
- Speculation and vacancy tax
- Property tax
- Property transfer tax
How we can help
These proposed PST changes will require businesses to assess the tax status of goods and services they provide in B.C., and potentially review and update tax tables, matrices, and calculations. Businesses not currently registered to collect and remit PST may have an obligation to do so to before Oct. 1.
For assistance with PST or any of the above-noted tax changes, please contact your BDO advisor or:
Brian Morcombe, Partner, Indirect Tax Practice Leader
Fred Wong, Senior Manager, Indirect Tax
The information in this publication is current as of Feb. 17, 2026.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.