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, including transitional rules for services purchased or provided before 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
• Reporting and paying PST
• Transitional rules – Services purchased or provided before or after 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
• Compiling, preparing and analyzing accounts payable
• Cost, financial, forensic, management or tax accounting
• Account reconciliation
• Providing advice, preparing documents or providing representation in relation to:
  • Taxes (including tax legislation, tax applications, tax appeals, administrative penalties, penalty equivalents, commission, interest, security, or any other matter related to taxes)
  • Grants relating to property taxes (such as home owner grants)

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

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 (for example, if the services relate to a jurisdiction outside B.C.). 

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.
• An 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.
• An 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 their 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, half of which are not in B.C. 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 PST, unless a specific exemption applies. For information about sales made before October 1, 2026, see the transitional rules below.

Bundled Sales

If, for a single price, you sell taxable accounting services with something non-taxable or exempt, you are making a bundled sale and you charge PST based on the bundled sales rules. For more information, see Bulletin PST 316, Bundled Sales and Leases (PDF, 410KB).

Fees and charges

Generally, fees and charges for accounting services are part of the purchase price of the services. However, fees and charges for the following activities are excluded from the purchase price and are not subject to PST if they reasonably reflect the cost of the activities: 

• Transmission of documents (for example, faxing) 
• Printing documents 
• Copying documents 

Note: If the fees or charges for the transmission, printing or copying of documents are marked up or otherwise do not reasonably reflect the actual cost of the activities, then they are included in the purchase price of the accounting services.

Disbursements

Generally, disbursements are requests for the reimbursement of an out-of-pocket expense incurred by a provider of accounting services, on behalf of a particular client, often 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. 

Most disbursements are part of the purchase price of accounting services. However, disbursements for the following categories are excluded from the purchase price and are not subject to PST if they reasonably reflect the cost of providing the accounting services: 

• Travel 
• Food 
• Accommodation 

Note: If the disbursements for travel, food or accommodation are marked up or otherwise do not reasonably reflect the actual cost of providing the accounting services, then they are included in the purchase price of the accounting services.

Exemptions

Accounting services that relate to a jurisdiction outside B.C.

Accounting services provided in B.C. to a person who resides, ordinarily resides or carries on business in B.C. are exempt from PST if the accounting services relate to:

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

For example, a person who resides in Vancouver hires a B.C. accountant to provide monthly and year-end accounting services for their business located in Calgary. In this case, the accounting services are exempt from PST because they relate to a physical presence and transactions in Alberta.

If part of the accounting services provided in B.C. to a person who resides, ordinarily resides or carries on business in B.C. relates to a jurisdiction outside B.C., and part of the services relates to B.C., the portion that relates to a jurisdiction outside B.C. is exempt from PST.

For example, a national chain store based in B.C. purchases payroll services provided in B.C. for all its employees across Canada. Because 35% of the chain's employees are in B.C., the chain claims a PST exemption on 65% of the total purchase price and pays PST on the 35% portion of the purchase price that relates to B.C.

Accounting services purchased for resale

Accounting services you purchase solely for resale to your clients are exempt from PST. For example, your accounting firm pays another firm to prepare tax returns that you will then provide to your clients. You are purchasing the accounting services for resale, and your purchase is exempt from PST. However, you must charge your clients PST when you sell them the accounting services.

To purchase these services exempt from PST, give the supplier your PST number or, if you're not registered, a Certificate of Exemption – General (FIN 490) (PDF, 200KB).

This exemption does not apply if the purchaser is a small seller. For more information, see Bulletin PST 003, Small Sellers (PDF, 340KB).

Accounting services provided as part of estate services

Accounting services provided as a trustee, executor or administrator of the estate of a deceased person are exempt from PST.

Accounting services provided in bankruptcy

Accounting services provided as a custodian or trustee in bankruptcy are exempt from PST.

Accounting services provided in liquidation or dissolution proceedings

Accounting services provided as a liquidator, receiver, receiver manager, trustee or similar person in liquidation or dissolution proceedings are exempt from PST.

Accounting services provided as part of rental property or strata management services

Accounting services provided as part of residential rental property management services or residential strata management services by a person who is licensed, or required to be licensed, under the Real Estate Services Act to provide those services, are exempt from PST.

However, if the accounting services are provided as part of taxable non-residential real estate services, the accounting services are taxable as part of those services. For more information, see our PST on non-residential real estate services page.

Accounting services provided to First Nations

Accounting services purchased by a First Nations individual or band are exempt from PST if the accounting services are performed on First Nations land or relate to:

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

The exemption does not apply to accounting services purchased by tribal councils, band-empowered entities, corporations or cooperatives.

For more information, see our PST on sales to First Nations page.

First Nations consultations and negotiations

Accounting services purchased by an Aboriginal organization representing the interests of First Nations individuals and bands are exempt from PST if the accounting services relate to:

• Aboriginal treaty or land claims negotiations
• Consultations with the provincial or federal governments in relation to Aboriginal rights or Aboriginal title
• Negotiations with the provincial or federal governments in relation to interim agreements that relate to Aboriginal rights or Aboriginal title
• Negotiations that relate to existing treaties or treaty rights
• Negotiations with other Aboriginal organizations in relation to overlapping treaty or land claims

Accounting services related to the consultations or negotiations listed above include accounting services related to disputes arising from such consultations or negotiations.

Accounting services provided to a related corporation

Corporations are exempt from PST on accounting services provided to that corporation by an employee of a related corporation described in Bulletin PST 210, Related Party Asset Transfers (PDF, 510KB).

Members of the diplomatic and consular corps

Accounting services purchased by certain members of the diplomatic and consular corps are exempt from PST if the purchaser holds a valid diplomatic or consular identity card issued by the Government of Canada.

For more information, see Bulletin CTB 007, Exemption for Members of the Diplomatic and Consular Corps (PDF, 160KB).

Accounting services provided to the federal government

Accounting services purchased by the Government of Canada are exempt from PST as long as the relevant federal department provides its PST number. Some federal boards, agencies, and commissions do not qualify for the PST exemption. For a list of federal entities that do not qualify, see Schedule I of the Federal-Provincial Fiscal Arrangements Act (Canada), and Part I and Part II of Schedule III of the Financial Administration Act (Canada).

Accounting services purchased from a small seller

If you purchase accounting services from a small seller, the accounting services are exempt from PST. For more information, see Bulletin PST 003, Small Sellers (PDF, 340KB).

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

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, 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, 340KB).

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.

Reporting and paying PST

You must report and pay all PST you charge on your sales.

If you sell any taxable accounting services, you must file your tax returns and pay your taxes electronically. If you do not file and pay electronically, you may be charged a penalty on the amount of tax you did not file or pay electronically.

For more information, see our Reporting and paying PST page.

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

If consideration for accounting services is paid or becomes due before October 1, 2026, PST may apply depending on when the accounting services are provided.

If you provide the services entirely before December 1, 2026, PST does not apply to the consideration. However, if you provide any of the services on or after December 1, 2026, PST applies to any consideration attributable to the services you provide on or after October 1, 2026.

PST applies to sales of accounting services where consideration is paid or becomes due on or after October 1, 2026, regardless of when the services are provided, unless a specific exemption applies.

Example 1 – Services for October and November 2026, consideration paid or becomes due in September

If on September 15, 2026, consideration is paid or becomes due for accounting services you provide in October and November 2026, PST does not apply to the consideration. You do not charge PST on the sale, and your client does not owe PST.

Example 2 – Services for October to December 2026, consideration paid or becomes due in September

If on September 15, 2026, consideration is paid or becomes due for accounting services you provide in October, November and December 2026, PST applies to any consideration attributable to the services you provide on and after October 1, 2026. If you bill $100 per month for your services, you collect $21 of PST as follows:

$100 per month × 3 months × 7% PST = $21

If at the time of the sale you're already registered to collect and remit PST, we recommend you charge and collect 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 (that is, 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, but you do not bill for the services until 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.