Updated September 21, 2026. On September 18, 2026, the Province of B.C. paused the planned PST on accounting services. It will not start on October 1. The province has not set a new date.
British Columbia planned to charge 7% PST on accounting services from October 1, 2026. On September 18, 2026, the province paused that plan. It will not start on October 1, and no new start date has been announced. This page sets out what Budget 2026 announced, so you know what would apply if the province brings it back.
Based on Province of B.C. Notice 2026-001, updated September 18, 2026, and the province’s guidance for accounting services as updated 31 July 2026.
Key takeaways
- Paused. The 7% PST on accounting services will not start on October 1, 2026. No new date has been set.
- If it returns as announced, it would not be recoverable. There is no PST equivalent of the GST input tax credit.
- Five service categories were named. Architectural, engineering and geoscience would be taxed on only 30% of the price. Accounting would be taxed on all of it.
- Four narrow exemptions were set out.
- The transitional rule for the October 1 start does not matter while the pause holds.
- Under the announced rules, an out-of-province accountant would not avoid it. The BC buyer would self-assess.
- If you registered early to charge PST on these services, check the province’s notice on what to do next.
If it returns: PST would not be recoverable
Most owners have learned to treat sales tax on business purchases as a wash. You pay GST on an expense, you claim the input tax credit, and the money comes back. That instinct would be wrong here.
BC PST has no general equivalent of the GST input tax credit. Unless a specific exemption applied, the 7% paid on accounting services would stay paid. It would be an increase in the cost of the service, not a timing difference.
That is why it was worth planning around. On a $6,000 annual accounting engagement the tax would have been $420. On $1,500 a month of bookkeeping, $18,000 a year, it would have been $1,260 a year. Neither amount applies while the expansion is paused.
| Annual spend on accounting services | PST at 7%, if it returns | Recoverable? |
|---|---|---|
| $3,000 | $210 | No |
| $6,000 | $420 | No |
| $12,000 | $840 | No |
| $25,000 | $1,750 | No |
If you raised next year’s budget for bookkeeping, corporate tax and year end by 7% to cover this, that amount is not needed while the pause holds.
Which services were named
Accounting was one of five categories. The tax base was not the same for all of them.
| Service category | Would be taxed on |
|---|---|
| Accounting, including bookkeeping and assurance | Full purchase price |
| Architectural services | 30% of the purchase price |
| Engineering and geoscience services | 30% of the purchase price |
| Security services, including private investigation | Full purchase price |
| Non-residential real estate services, including trading, rental property management and strata management | Full purchase price |
The 30% base for architectural, engineering and geoscience work would have changed the number a great deal on a construction or development project.
Inside accounting, what would count
| Service | Treatment |
|---|---|
| Bookkeeping | Taxable |
| Financial statements and notes | Taxable |
| Journal entries and account reconciliation | Taxable |
| Payroll preparation | Taxable |
| Budgets, invoices, bills, statements of account | Taxable |
| Tax and information returns, and records relating to them | Taxable |
| Applications for a tax credit, rebate or refund | Taxable |
| Assurance work, audits and reviews | Taxable |
| Cost, financial, forensic, management and tax accounting | Taxable |
| Tax advice, documents or representation, including appeals | Taxable |
| Work an employee does for their own employer | Not an accounting service |
| In-person accounting training or professional development | Not an accounting service |
The transitional rule, now on hold
The province set out a transitional rule for the October 1 start. With the start paused, it does not currently apply. It is kept here for reference.
Under that rule, if the amount was paid or became due before October 1, 2026, and the work was provided entirely before December 1, 2026, no PST would apply. If any part of the work landed on or after December 1, PST would apply to the share attributable to work provided on or after October 1.
The province’s own example: an amount paid or becoming due on September 15, 2026 for accounting work in October and November 2026 would carry no PST. If the province sets a new start date, check the transitional rule again against that date.
If you were timing a year end, cleanup or catch-up bookkeeping project around October 1, that timing no longer matters for PST. See the BC small business tax deadline calendar for your filing dates.
The four exemptions
| Situation | Treatment |
|---|---|
| Work as a custodian or trustee in bankruptcy | Exempt |
| Work as a trustee, executor or administrator of an estate | Exempt |
| Services purchased from a small seller | Exempt |
| Services purchased purely for resale to your own clients | Exempt, with a PST number or Form FIN 490 |
The resale exemption would stop the tax applying twice when one firm subcontracts work to another. It would not apply where the purchaser is a small seller.
Disbursements, and the mark-up trap
Disbursements would generally form part of the purchase price and be taxed with the fee. Travel, food and accommodation were carved out, but only where they reasonably reflect the actual cost of providing the service. A margin on mileage or meals would have been taxed at 7%.
Hiring outside BC would not have avoided it
Under the announced rules, accounting services provided outside BC would be taxable where the buyer resides, ordinarily resides or carries on business in BC and the work relates to BC property, a physical or legal presence in BC, or an activity or transaction in BC.
If an out-of-province firm did not charge it, the buyer would have to self-assess and pay the PST directly. None of this applies while the pause holds.
If you provide any of these services
Under the announced rules, registration would have been required for anyone selling these services on or after October 1, 2026, whether or not they are a CPA, so bookkeepers were inside the rule. With the expansion paused, no one has to start charging this PST on October 1. If you already registered for it, check Notice 2026-001 for what to do next.
Under the announced rules, bills sent before October 1 for work running past November 30 would have needed PST on the part provided from October 1. That does not apply while the pause holds.
How this sits with the PST you already handle
The paused tax was on services, not goods. If you sell online, PST on online marketplace sales works as it did. If you are in the trades, PST on materials for contractors is unchanged. The only change that was coming, 7% on your accountant’s invoice, is on hold.
Common questions
Does PST apply to accounting fees in BC?
Not from October 1, 2026. The province paused the planned 7% PST on accounting services on September 18, 2026, and has not set a new date. Accounting fees in BC do not carry PST today.
Can I claim the PST back like I claim GST?
If the tax returns as announced, no. GST paid on a business expense is generally recovered by a registrant through an input tax credit. BC PST has no equivalent general credit, so unless an exemption applied, the 7% would be a real cost.
Does paying early still matter?
Not while the pause holds. The transitional rule only mattered because of the October 1 start. If the province sets a new date, check the rule again against that date.
Which other professions were included?
Accounting including bookkeeping and assurance, architectural services, engineering and geoscience services, security services including private investigation, and non-residential real estate services including trading, rental property management and strata management.
Would the whole fee be taxed for every profession?
Not for all of them. Architectural, engineering and geoscience services would be taxed on 30% of the purchase price. Accounting would be taxed on the full purchase price.
Does using an accountant outside BC avoid it?
Under the announced rules, generally no. The buyer would self-assess if the outside firm did not charge it. None of this applies while the pause holds.
Would disbursements be taxed?
Most would, because they form part of the purchase price. Travel, food and accommodation would be excluded, but only where they reasonably reflect the actual cost.
Would bookkeepers have had to register, or only CPAs?
Under the announced rules, bookkeeping was named as an accounting service and registration was required whether or not you are a CPA. While the expansion is paused, there is nothing new to charge.
What this means for your planning
We are working through the pause with clients now, including budgets set with the 7% built in and any early registrations. Offices in Abbotsford and Langley, working with businesses across B.C.
Sources: Province of British Columbia, Notice 2026-001, Notice to providers of professional services (updated September 18, 2026), and PST on accounting services (updated 31 July 2026). General information only. Talk to us about your situation.
PST on services is not the only B.C. rate that escalates. On vehicles it climbs to 20%, and the interaction with the federal luxury tax is the part most buyers get wrong.