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Charging and collecting PST

Last updated on April 1, 2025

If you're required to be registered to collect PST, you must charge and collect the tax when the tax is payable, unless a specific exemption applies to the sale or lease.

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When to charge and collect PST

PST generally applies to:

  • The purchase or lease of new and used goods in B.C.
  • Goods brought, sent or delivered into B.C. for use in B.C.
  • The purchase of:
    • Software
    • Services to goods such as vehicle maintenance, furniture assembly, computer repair
    • Accommodation
    • Legal services
    • Online marketplace services
    • Telecommunication services, including internet services and digital and electronic media content, such as music and movies
  • Gifts of vehicles, boats and aircraft

Find out more about how PST applies to specific industry types.

Municipal and regional district tax (MRDT)

MRDT generally applies whenever PST applies to accommodation, but only in B.C. areas that participate in the MRDT program.

See Accommodation to learn more and use our MRDT location map to find participating areas.

When PST is payable

Generally, PST is payable when the purchase or lease price, or any portion of the purchase or lease price, is paid or becomes due, whichever is earlier.

PST becomes due the earliest of:

  • The day you first issue the invoice for the sale or lease 
  • The date on the invoice
  • The day you would have, but for undue delay, issued the invoice
  • The day the purchaser or lessee must pay the purchase or lease price under a written agreement

You must report and pay (remit) to us all PST you have charged, whether or not you've actually collected it from your customer. All PST you charge within a reporting period must be remitted to us no later than the last day of the month following the reporting period.

Learn more about reporting and paying PST.

Leases, licences and similar arrangements

If you sell or provide goods, software or services by way of a lease, licence or similar arrangement under a written agreement, you must charge and collect PST at the same time the purchaser of the good or service is required to pay the purchase or lease price under that agreement.

Example: On March 1, 2024, you lease a piece of equipment to your customer under a written agreement in which they must make lease payments of $500 on the first of each month for a 12-month period. A $500 portion of the lease price becomes due on the first of each month, so the PST you must charge and collect from your customer on the first of each month is 7% of $500.

Charging PST before the purchase price becomes due or is paid

In certain circumstances, you must charge PST before the purchase price for the goods becomes due or is paid. For example, if you make a sale on credit where the purchaser takes possession of the goods now but pays one year later, you must charge PST before your customer’s payment is due.

This requirement applies when all or any portion of the purchase price has not been paid or has not become due on or before the last day of the month immediately following the first month in which:

  • The ownership or possession of the goods transfers to the purchaser or
  • If you deliver the goods to the purchaser on approval, consignment or sale-and-return basis or similar terms, the purchaser becomes the owner of the goods or makes the goods available to someone else

In these circumstances, you must charge PST on any portion of the purchase price that had not yet become due or been paid, by the last day of the month immediately following the month the purchaser takes ownership or possession of the goods or makes the goods available to someone else.

Example: In July 2024, you sell a couch to your customer. They take ownership of the couch in July 2024, but the full purchase price does not become due until July 2025. Although you will not be issuing an invoice until July 2025, you must charge your customer PST on the full purchase price of the couch on August 31, 2024.

As an alternative to the above example, assume your customer is required to make monthly payments for the couch from July 2024 to July 2025, and you issue invoices for the payments on a monthly basis. Although a portion of the purchase price becomes due each month, your customer has already taken possession of the couch. In this situation, you must charge PST on:

  • The invoice amount for July 2024 and
  • The remainder of the purchase price that had not yet become due or been paid as of August 31, 2024 (the month immediately following the month they took ownership)

PST information by industry

Use the resources listed below to find out how PST applies to specific industry types.

Accommodation and food services

Energy and natural resources

Farming and fishing

Goods

Land and buildings 

Motor vehicles

Retail 

Services

Report suspected tax non-compliance

If you know or suspect a person or business isn’t complying with B.C. tax laws, you can anonymously report them using the online tip form.

Submit an online tip

You can also submit a tip over the phone 24 hours a day, 7 days a week at 1-877-977-0858

Contact information

Our hours of operation are Monday through Friday, 8:30 am to 4:30 pm.

Within Canada and the U.S.A. Toll Free
1-877-388-4440
Phone
1-250-410-0373
Email
CTBTaxQuestions@gov.bc.ca