PST in BC is a retail sales tax that applies when taxable goods, software or services are acquired in B.C. or brought into B.C. for use there. The general rate is 7% of the purchase or lease price, with some exceptions, and businesses that sell taxable items in B.C. must register to collect it.
I've taken this from the Government of British Columbia's PST pages, checked in October 2026. PST is separate from the federal GST, so a B.C. business can have to register for both. If you're still at the GST stage, my GST/HST registration guide covers the federal side.
What PST applies to
The province describes PST as applying to taxable goods, software and services acquired in B.C., or brought into B.C. for use in B.C., unless a specific exemption applies. Generally the rate is 7%, and the province's small business guide lists the exceptions.
Who has to register to collect PST
You must register if you're located in B.C. and, in the ordinary course of your business in B.C., you do any of these:
- Sell taxable goods, from general merchandise like clothing, cosmetics, appliances or souvenirs to motor vehicles, parts and vapour products.
- Lease taxable goods in B.C.
- Provide software or taxable services, such as repairing, altering, installing or maintaining taxable goods.
- Run an online selling platform for others in B.C.
- Provide telecommunication services in B.C., including internet access, TV, phone and streaming services.
- Act as a liquidator, receiver or trustee and dispose of assets as part of your business.
You might need to register even outside B.C.
The province says you may also need to register if:
- you're located outside B.C. and you make sales to B.C. customers
- you enter into contracts to improve real property where customers have agreed to pay PST
- you sell exclusive products as a direct seller to an independent sales contractor in B.C. for resale
- you sell accommodation in B.C.
- you operate an online selling platform that facilitates sales by others
If you sell accommodation in an area where the Municipal and Regional District Tax applies, you don't register for it separately: your PST number is also your MRDT number. If you only sell your accommodation through an online platform acting as the facilitator for the booking, you may not have to register at all.
The rule that surprises people
Here's the one I'd underline. The province says that if you're required to register but don't, that doesn't remove your obligation to collect and remit PST. You're still considered a collector. So not registering doesn't make the tax go away. It just means you owe it without having charged your customers for it.
The paused PST expansion
The province had announced PST would expand to accounting, architectural, engineering, geoscience, non-residential real estate and security services. That expansion is paused. If you registered for a PST account because of it, the government says you should cancel it using eTaxBC or by phone.
Voluntary registration
Some businesses that don't have to register can choose to. The province gives examples:
| Business | Why it might register voluntarily |
|---|---|
| Wholesalers that don't make retail sales | To use a PST number to claim an exemption on inventory bought for resale |
| Small sellers | To self-assess PST owed on items used in the business on the PST return |
| Principals and agents | To jointly designate one party to collect and remit PST under a designation agreement |
How PST works once you're registered
- Register to collect PST if any of the triggers above apply to you.
- Charge and collect PST on your taxable sales, unless an exemption applies.
- Report and pay the PST you collect, plus any PST you owe on items you use in your business.
- File and pay through eTaxBC, which the province calls the easiest and fastest way, or use the downloadable forms.
- If you've missed PST you should have charged or paid, contact the province about a voluntary disclosure.
The province also runs audits to identify and collect unpaid revenue, and you can appeal an assessment or a refused refund if you think it's wrong. If you're setting up from scratch, my guide to registering a business in BC is the place to start.
Refunds, audits and appeals
If you overpaid PST or paid it in error, you may be able to claim a refund. The province also audits businesses to find and collect unpaid revenue, and its guidance on audits is in Bulletin CTB 003. If you think an assessment, a refused refund or another decision is wrong, you may be able to appeal, with the rules set out in Bulletin GEN 002. Bulletin PST 001 is the detailed guide to whether you have to register at all, and it's the one to read first if you're unsure. Small sellers have their own bulletin, PST 003, which is worth a look before you decide whether to register voluntarily.
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My verdict
PST trips up new B.C. businesses because it sits on top of GST and the triggers are wider than "I run a shop". Repairs, installs, software, telecoms and online selling platforms are all in. Check the registration list before you make your first sale, because the province treats you as a collector whether you've registered or not. And if you're an accountant, architect or engineer who registered for the expansion, cancel that account.
Frequently asked questions
What is the PST rate in BC?
Generally 7% of the purchase or lease price of taxable goods and services, with some exceptions.
Who has to register for PST in BC?
Businesses located in B.C. that sell or lease taxable goods, or provide software or taxable services, in the ordinary course of business in B.C., plus some sellers outside the province.
Is PST the same as GST in BC?
No. PST is a provincial retail sales tax and GST is federal, so a business may need to register for both.
What happens if I should register for PST but don't?
You're still considered a collector and still have to collect and remit PST.
How do I file and pay PST in BC?
Through eTaxBC, which the province calls the easiest and fastest way, or with the downloadable forms.
Do businesses outside BC have to register for PST?
They may. The province says businesses located outside B.C. that make sales to B.C. customers may also be required to register.
Is PST being added to accounting and engineering services?
That expansion is paused, and businesses that registered because of it are told to cancel their PST account.
