Exemptions to BC’s expanded PST on professional services announced

Published by Elizabeth Egberts

This update follows our March 23, 2026 blog post on British Columbia’s expansion of Provincial Sales Tax (“PST”) to certain new categories of professional services. On July 9, 2026, the Province announced new exemptions relating to these services (“Exemptions”). The new rules, and exemptions, take effect on October 1, 2026.

Key exemptions

The following Exemptions will apply to accounting services, architectural services, engineering services, and security services:

    1. services connected to places outside British Columbia;
    2. services provided to First Nations, First Nation individuals, and certain services connected to First Nation land;
    3. services provided between related companies in the same corporate group; and
    4. services bought only so they can be resold.

Note that the exemption for services related to jurisdictions outside of British Columbia also applies to legal services. There were already exemptions in place for legal services provided to First Nations and within a corporate group.

Further, non-residential real estate services provided to First Nations, between related companies, purchased for resale, or provided in relation to farmland are generally exempt.

The announced Exemptions also include exemptions for certain services or industries. For example:

  • Some accounting services may be exempt, including services related to fiduciary, insolvency, rental property management, or strata management work.
  • Some architectural services may be exempt, including feasibility studies and post-construction services.
  • Some engineering services may be exempt, including advisory, construction, and project management services.

Each specific exemption must be reviewed carefully to ensure all requirements of the regulation are satisfied.

Takeaway

The Exemptions mean that not all professional services will be subject to PST when the rules take effect on October 1, 2026. Businesses that provide or buy accounting, architectural, engineering, security, or legal services should review whether an exemption applies.