If you run a business in British Columbia, a change is coming that will affect nearly every invoice you receive from your accountant, bookkeeper, and several other professional service providers. Starting October 1, 2026, the province is expanding the Provincial Sales Tax to cover a range of professional services that have never been taxed this way before, including accounting and bookkeeping. Here is what is actually changing, who it affects, and what you should be doing right now to prepare.
What Is Changing
Effective October 1, 2026, British Columbia will apply 7% PST to the following professional services:
● Accounting services, including bookkeeping and assurance services
● Architectural services
● Engineering and geoscience services
● Security and private investigation services
● Non residential real estate services, including trading services, rental property management, and strata management
Architectural, engineering, and geoscience services have a partial exemption built in, where PST applies to only 30% of the purchase price rather than the full fee. Accounting and bookkeeping services do not get this partial treatment. If your invoice is for accounting or bookkeeping work, the full amount becomes subject to the new 7% tax.
This is a genuinely significant shift. Professional services like these have historically sat outside PST entirely in British Columbia. This expansion brings the province's tax base closer in line with a handful of other provinces that already tax professional services, and it means most BC businesses will see a new line item on invoices they receive starting this fall.
Who This Affects
If you are a business owner purchasing accounting, bookkeeping, or assurance services in BC, you will start seeing 7% PST added to those invoices from October 1 onward, on top of any GST that already applies. For a business spending meaningful amounts annually on bookkeeping and accounting support, this is a real cost increase worth building into your budget now rather than discovering it on your first invoice after the change takes effect.
If you are a service provider offering any of the newly taxable categories, including firms like ours, you will need to register for PST, update your invoicing systems, and begin charging and collecting the tax correctly from the effective date.
A Transitional Detail Worth Knowing
One detail that catches businesses off guard: work performed before October 1, 2026 but invoiced after that date may still be subject to the new PST, depending on the final transitional rules. This means the timing of invoicing around the effective date matters, both for service providers managing their billing cycles and for clients trying to understand what they will owe.
Final regulations clarifying several of these details are expected later this summer, so some specifics may still shift before October 1 arrives.
What You Should Do Now
If you purchase accounting or bookkeeping services, start factoring an additional 7% into your budget for these costs from October 1 onward. If you have any large engagements planned for later this year, such as year end financial statement work or a significant advisory project, talk to your provider about timing and how the transition will be handled on your invoices.
If you provide any of the newly taxable services, registration can begin as early as several months before your first taxable sale. Most advisors are recommending businesses wait until the final regulations are released before registering, since some definitions and exemptions are still being finalized. That said, now is the right time to start reviewing your invoicing systems, engagement letters, and internal processes so you are ready to move quickly once the rules are confirmed.
Where This Leaves You
This change touches a wide range of BC businesses, not just the professional service firms directly affected. Whether you are budgeting for higher costs on the services you buy, or preparing your own systems to charge PST correctly for the first time, the next few months are the window to get ahead of this rather than scrambling in September.
If you have questions about how this affects your specific situation, whether as a business purchasing these services or as a provider needing to get registered and compliant, we are happy to help you think through it.
This article is provided for general informational purposes and does not constitute legal or tax advice specific to your circumstances. Contact Widodo CPA Corp. to discuss how the BC PST expansion applies to your business.
