PST on accounting services

Budget 2026 announced an expansion of the provincial sales tax (PST) to certain professional services, effective October 1, 2026. For a list of professional services affected by this change, see Notice 2026-001: Notice to providers of professional services. 

This page explains how PST applies to accounting services provided on or after October 1, 2026.

On this page

• What are accounting services?
• Accounting services provided in B.C.
• Accounting services provided outside B.C.
• Accounting services provided outside B.C. that relate to B.C. and another jurisdiction
• Charging PST on accounting services
• Exemptions
• Registration requirements
• Transitional rules – Services purchased or provided before October 1, 2026

What are accounting services?

Accounting services include:

• Preparing accounting records, including:
  • Financial statements and notes to financial statements
  • Journal entries
  • Journals of accounts
  • Payroll
  • Budgets
  • Invoices, bills or statements of account
  • Tax or information returns
  • Any records related to a tax or information return
  • Applications for a tax credit, rebate or refund
• Providing assurance services, including auditing or reviewing accounting records and accounting controls
• Bookkeeping
• Billing
• Cost, financial, forensic, management or tax accounting
• Account reconciliation

Compiling, preparing and analyzing accounts payable are also accounting services for PST purposes.

For PST purposes, accounting services do not include the following:

• Services provided by a person to their employer in the course of their employment
• Providing in-person accounting training, courses or professional development. For information on educational services provided remotely, see our Telecommunication services page

Once the PST regulations related to accounting services are complete, we will publish more details on what, if any, additional services are taxable accounting services. Subscribe to receive email notifications when we update our website.

Accounting services provided in B.C.

Accounting services provided in B.C. to a person who resides, ordinarily resides or carries on business in B.C. are subject to PST, unless a specific exemption applies. 

Accounting services provided in B.C. to a person who does not reside, ordinarily reside or carry on business in B.C. are subject to PST, unless a specific exemption applies, if the accounting services relate to:

• Real property situated in B.C.
• Tangible personal property that is, or that is contemplated to be, ordinarily situated in or delivered in B.C.
• Any other property that is, or that is contemplated to be, owned, possessed or used in B.C., or a right to use such property in B.C.
• A physical or legal presence in B.C.
• Any activity or transaction in B.C.
• The contemplation of a presence, activity or transaction in B.C. (for example, accounting services related to a proposed business venture in B.C.)

For example, a person who resides in Alberta hires a B.C. accountant to provide monthly and year-end accounting for a business located in Vancouver. The accounting services are taxable because they relate to a physical presence and transactions in B.C.

Accounting services provided outside B.C.

Accounting services provided outside B.C. to a person who resides, ordinarily resides or carries on business in B.C. are subject to PST, unless a specific exemption applies, if the accounting services relate to:

• Real property situated in B.C.
• Tangible personal property that is, or that is contemplated to be, ordinarily situated in or delivered in B.C.
• Any other property that is, or that is contemplated to be, owned, possessed or used in B.C., or a right to use such property in B.C.
• A physical or legal presence in B.C.
• Any activity or transaction in B.C.
• The contemplation of a presence, activity or transaction in B.C. (for example, accounting services related to a proposed business venture in B.C.)

For example, a person who resides in B.C. hires an Alberta accountant to provide payroll accounting for the person's business in Vancouver. The accounting services are taxable because they're purchased by a person who resides in B.C. and relate to activities in B.C.

Accounting services provided outside B.C. that relate to B.C. and another jurisdiction

If a person who resides, ordinarily resides or carries on business both in and outside B.C. purchases accounting services provided outside B.C., and the accounting services relate to B.C. and a jurisdiction outside B.C., PST applies to the services. However, the person can claim exemption from paying PST on the portion of the purchase price for the accounting services that relates to a jurisdiction outside B.C. The person must make a reasonable estimate of the exempt portion of the purchase price and provide the estimate to the seller.

For example, a national chain store purchases accounting services outside B.C. and the services relate to a matter that affects all its stores across Canada. Because half of the chain's stores are in B.C., the chain reasonably estimates that the services relate half to B.C. and half to the rest of Canada. The chain claims exemption on 50% of the total purchase price and pays PST on the 50% portion of the purchase price that relates to its stores in B.C.

Charging PST on accounting services

Effective October 1, 2026, PST applies at the rate of 7% to the purchase price of taxable accounting services. The purchase price includes fees, charges and disbursements, as explained below.

If you sell taxable accounting services on or after October 1, 2026, you must charge and collect the PST, unless a specific exemption applies. For information about sales made before October 1, 2026, see the transitional rules below.

Fees and charges

Fees and charges for accounting services, other than those excluded by regulation, are part of the purchase price of accounting services. Once the PST regulations related to accounting services are complete, we will publish more details on what fees and charges are excluded from the purchase price of accounting services. Subscribe to receive email notifications when we update our website.

Disbursements

Generally, a disbursement is a request for the reimbursement of an out-of-pocket expense incurred by a provider of accounting services, on behalf of a particular client, as a result of a billing by a third party. For example, an accountant pays an application fee and recovers the fee from their client as a disbursement. 

Disbursements, other than those excluded by regulation, are part of the purchase price of accounting services. Once the PST regulations related to accounting services are complete, we will publish more details on what disbursements are excluded from the purchase price of accounting services. Subscribe to receive email notifications when we update our website.

Exemptions

Once the PST regulations related to accounting services are complete, we will publish more details on what accounting services are exempt from tax. Subscribe to receive email notifications when we update our website.

Registration requirements

If you sell taxable accounting services that you'll provide on or after October 1, 2026, you must register to collect and remit PST.

Note: You're required to register even if you're not a Chartered Professional Accountant (CPA).

You can register up to six months before your first taxable sale, and we recommend you register as soon as possible. For example, if you're not currently registered but will be selling taxable accounting services on October 1, 2026, you can register as of April 1, 2026.

If prior to October 1, 2026, you will bill for taxable services that extend past November 30, 2026, we recommend you register in advance of those sales. The services provided on or after October 1, 2026, are taxable and we recommend you charge and collect PST. For more information, see the transitional rules for services purchased before October 1, 2026, below.

You are not required to register if you provide only non-taxable or exempt services, or if you qualify as a small seller (PDF, 350KB).

If you currently access client accounts in eTaxBC as a third-party tax preparer, you can continue accessing those accounts in eTaxBC. Your clients will retain their PST accounts, but you will require a PST account for your own business.

How to register

If you're required to register, you must register online using eTaxBC.

Transitional rules – Services purchased or provided before October 1, 2026

If consideration for accounting services is paid or becomes due before October 1, 2026, and the services are provided entirely before December 1, 2026, PST does not apply to the consideration. However, if any portion of those services is provided on or after December 1, 2026, PST applies to any consideration attributable to the services provided on or after October 1, 2026.

Example 1 – Services for October and November 2026, billed in September

If on September 15, 2026, you bill for accounting services for October and November 2026, no PST is due on those two months of services. You do not charge PST on the sale, and your client does not owe PST.

Example 2 – Services for October to December 2026, billed in September

If on September 15, 2026, you bill for accounting services for October to December 2026, PST is due on any consideration for the services that are provided on and after October 1, 2026.

If at the time of the sale you're already registered to collect and remit PST, we recommend you charge and collect the PST. If you do not, your client must self-assess (pay directly to us) the PST due as follows:

• If they have a PST number, by using their PST return for the reporting period that includes October 2026
• If they do not have a PST number, by completing a Casual Remittance Return (FIN 405) (PDF, 260KB) due by November 30, 2026 (i.e. on or before the last day of the month following October, when the services became taxable)

Example 3 – Long-term contract for services, billed monthly

You have a contract with a client to provide them with a year of accounting services, beginning January 1, 2026. You bill for the next month's services on the 15th of each month. When you issue a bill on September 15, 2026, for October 2026 services, you do not charge PST on the October services, and your client does not owe PST. 

You must charge and collect PST on monthly bills you issue as of October 1, 2026. When you issue a bill on October 15, 2026, for November 2026 services, you must charge and collect PST.

Example 4 – Services for September 2026, billed in October

You provide accounting services to a client in September 2026. You bill for the services on October 1, 2026. You must charge and collect PST on the sale. When consideration for accounting services is paid or becomes due on or after October 1, 2026, you must charge and collect PST, regardless of when you provided the services.