PST in BC: who has to register, what is taxable, and when to file
GST is federal and PST is provincial, and plenty of BC businesses register for one and forget the other. Here is who needs a PST number and what to charge.
Almost every BC owner knows about GST. PST is the one that gets missed, usually because it is a separate registration with a separate government, separate rules and no input credits to soften the blow.
The gap is expensive: unlike GST, PST you failed to charge is generally still yours to remit. The customer is long gone and the assessment lands on you.
Do you need a PST number?
If you sell or lease taxable goods, software or taxable services in BC in the ordinary course of business, you almost certainly need to register. That includes online sellers outside the province shipping into BC once they cross the provincial thresholds.
There is a small-seller exemption for businesses with under $10,000 in gross BC revenue that do not keep an establishment, but it is narrow — it excludes anyone selling from a shop, and it disappears as soon as you cross the threshold.
What is actually taxable
- Most tangible goods sold or leased in BC, new or used
- Software, including many subscription products
- Services to goods — repairs, maintenance, installation, alterations
- Telecommunications and legal services
- Accommodation, with its own additional rates
What is commonly exempt
- Most food for human consumption
- Children's clothing and footwear within the stated limits
- Bicycles, and many safety equipment items
- Goods purchased for resale, with a valid exemption certificate
- Most professional services that are not services to goods
The four mistakes that trigger a review
First, charging PST on the whole invoice when part of it is exempt labour, or charging none when part of it is a taxable repair. Mixed invoices need the taxable portion shown separately.
Second, accepting resale exemptions without collecting and keeping the customer's PST number. If you cannot produce the certificate, the PST becomes yours.
Third, forgetting self-assessment. PST is owed on taxable goods you bring into BC for your own use from a supplier who did not charge it — equipment and shop supplies are the usual culprits.
Fourth, treating PST collected as revenue. It is money held for the province, and spending it before the filing date is how a manageable return becomes a cash problem.
Filing and record-keeping
BC sets your filing frequency from the amount you collect, and returns are due by the last day of the month after the period ends. Late filing attracts penalties and interest, and repeated lateness moves you onto tighter deadlines.
Keep your PST collected in its own account in the books, separate from GST. That single change makes the return a five-minute job and stops the money getting spent.
Not sure where you stand?
We register BC businesses for PST, review what should be taxable on your invoices, and file both GST and PST on schedule as part of monthly bookkeeping. If you have been selling for a while without a PST number, tell us — voluntary correction is far cheaper than an assessment.
Send an enquiry or email admin@averonaccounting.ca and we will reply within one business day. Calls are available by appointment.
Common questions
Who has to register for PST in BC?
Generally any business selling or leasing taxable goods, software or taxable services in BC in the ordinary course of business, including many out-of-province sellers shipping into BC. Small sellers with under $10,000 of gross BC revenue who do not maintain premises may be exempt, but the exemption is narrower than most owners assume.
Is PST the same as GST?
No. GST is 5% federal, administered by the CRA, and you can claim input tax credits on the GST you pay. PST is 7% provincial, administered by BC, and there are no input credits — PST you pay on your own purchases is a cost unless a specific exemption applies.
Are services subject to PST in BC?
Most services are not, but several are — including services to tangible goods such as repairs and maintenance, telecommunications, legal services, and software. If you both sell goods and perform work on them, the invoice usually needs to separate the two.
How often do I file PST?
BC assigns your filing frequency — monthly, quarterly, semi-annually or annually — based on the PST you collect. Returns and payment are due by the last day of the month following the end of the period.
Not sure your GST filings are on track?
Bring your filing frequency, last return, or CRA letter to a free consultation. We'll explain the next practical step.
Every enquiry gets a reply within one business day. Nothing is billed until you accept a flat fee in writing.
Averon Accounting is a bookkeeper in Abbotsford, BC serving small businesses across the Fraser Valley. See what bookkeeping costs in BC or check your CRA deadlines.
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