Many businesses face new compliance obligations and additional unrecoverable provincial sales tax (PST) costs relating to certain professional services in British Columbia (B.C.) effective October 1, 2026. British Columbia announced in its 2026 provincial budget that it will extend the application of the B.C. PST to accounting services, architectural services, engineering and geoscience services, security services, and a wide range of non-residential real estate services. British Columbia has released related PST proposals with various measures to be prescribed at a later date and several definitions referencing other legislation. The province is expected to release further details in related regulations and guidance.
While some details are still pending, businesses providing these services should begin assessing the impact of these measures and evaluating their effects on their processes and systems. Purchasers may also want to assess the potential additional costs that the PST on the newly taxable professional services may add to their projects.
