British Columbia to expand PST to professional services

The Government of British Columbia is expanding the Provincial Sales Tax (PST) to include various professional services, effective October 1, 2026. The expansion will cover sectors such as architectural, engineering, geoscience, accounting, bookkeeping, security, and commercial real estate.

For architectural services, the tax will apply to all invoices issued on or after the effective date, regardless of when the contract was signed or the services were provided. Professionals using AIBC 8C contracts are advised to amend existing agreements to include PST provisions. While the expansion is expected to generate approximately $1.36 billion over three years, critics argue the tax increase could reduce business competitiveness, particularly as Canadian companies face potential trade challenges in the United States.

Unlike the federal Goods and Services Tax (GST), businesses generally cannot recover PST through input tax credits, meaning the tax may act as an additional cost of doing business that impacts the broader supply chain.