Blog https://velesconsulting.com Practical advice, tax update, and financial strategies to help Canadian business make confident decision. en Fri, 31 Jul 2026 00:52:04 +0300 PST on Professional Services in BC: What Businesses Need to Know Before October 1, 2026 https://velesconsulting.com/tpost/l7r6o66sj1-pst-on-professional-services-in-bc-what https://velesconsulting.com/tpost/l7r6o66sj1-pst-on-professional-services-in-bc-what?amp=true Tue, 28 Jul 2026 13:35:00 +0300 Veles Consulting Corporate Tax BC’s new 7% PST hits professional services on Oct 1, 2026. Get clear examples, invoice rules, and prep tips for accounting, architecture, engineering, security and commercial real estate firms.

PST on Professional Services in BC: What Businesses Need to Know Before October 1, 2026

A straightforward explanation of the new tax, with calculations and examples, so you can clearly understand what will change on your invoices.

Prepared by the Veles Consulting team.

Is PST Being Extended to Professional Services, Including Accounting?

Short answer: yes.
Long answer: this article explains the changes in plain language and with concrete examples, just as we do for our clients every day.

What Changed and Why

The 2026 British Columbia Budget announced an expansion of the Provincial Sales Tax (PST) base to include a range of professional services. This was formalized in Bill 2 (Budget Measures Implementation Act, 2026), and administrative guidance was issued by the province in Notice 2026-001.
Starting on October 1, 2026, PST at a rate of 7% will apply to several services that were previously exempt, including:
  • Accounting services.
  • Architectural services.
  • Engineering and geoscience services.
  • Security services.
  • Services related to commercial real estate.
Important: while the budget was presented in February and the notice was issued in February–March, final details on some service categories and exemptions are still being clarified. Always verify the latest information on the official BC government website before making decisions.

Who This Affects

If your business:
  • Purchases accounting, architectural, engineering, security, or commercial real estate services; or
  • Provides such services to clients in BC,
then these changes directly affect your costs, invoices, and accounting.
Service type
PST base
Practical implication
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Example 1: How PST Is Calculated for Architects and Engineers

Let's do the math

An engineering firm bills a client CAD 10,000 for design work.

The tax isn't calculated on the full amount — only on 30% of the fee: 30% × CAD 10,000 = CAD 3,000.

PST at 7% applies to that CAD 3,000: 7% × CAD 3,000 = CAD 210.

The client pays an extra CAD 210 — that works out to about 2.1% of the total invoice, not the full 7% you might expect.
For accounting, security, and real estate services, there is no reduced base: PST is calculated on the full invoice amount.

Example 2: Mixed Services in One Project

This is a common situation for small businesses: one contract may include several types of work. Suppose a company signs a contract for CAD 10,000: CAD 6,000 — architectural work, subject to the 30% rule. CAD 4,000 — related services with no reduced base, taxed in full. PST calculation: Architectural portion: 30% x 6,000 = CAD 1,800; 7% x 1,800 = CAD 126. Other services: 7% x 4,000 = CAD 280. Total PST: CAD 406. Conclusion: when a project includes mixed services, the costs should be separated by category and taxed accordingly. This is important for accurate invoicing and for compliance during audits.

What This Means

Starting October 1, 2026, PST will become a new expense item for many businesses that purchase accounting, engineering, architectural, security, or commercial real estate services in BC.
Our advice: do not wait until October. Review contracts, budgets, and invoicing systems now, ideally with your accountant or tax advisor. Businesses that prepare in advance will enter fall 2026 without unpleasant surprises.

Why the Invoice Date Alone Is Not Enough

Many companies assume: “If I issue the invoice before October 1, there will be no tax.” That is not always correct. What matters is not only the invoice date, but also when the service is actually rendered and which period the payment covers.

How We Can Help

The Veles Consulting team can help your business prepare for these changes:
  • Determine whether your business needs to register for PST and assist with error-free registration.
  • Analyze your current contracts and service agreements to identify where and when the tax will apply.
  • Configure or review invoice templates and accounting systems to ensure the tax is calculated automatically and accurately.
  • Help forecast how the changes will affect your company’s budget for the second half of 2026 and for 2027.

For Veles Consulting Clients

Some services provided on or after October 1, 2026, may also be subject to the provincial sales tax (PST). We will provide additional information on how this change will affect our services, invoices, and billing processes as the effective date approaches.
If you have questions about how these PST changes specifically affect your business, contact our team. We will help you navigate the changes with minimal stress.

Additional Information

This material is based on official guidance from the Government of BC (Notice 2026-001) and the text of Bill 2 (Budget Measures Implementation Act, 2026). Some details, including exemptions, exceptions, and administration, are still being clarified and are expected by late summer 2026. We recommend checking the official provincial website before making any decisions.
Sources for independent verification:
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