PST on engineering and geoscience 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 engineering and geoscience services, including transitional rules for services purchased or provided before October 1, 2026.

PST will apply at the rate of 7% on the amount equal to 30% of the purchase price of engineering or geoscience services.

On this page

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

What are engineering and geoscience services?

Engineering and geoscience services are advice or services that are both:

1. Provided by a person who is registered or required to be registered under the Professional Governance Act with Engineers and Geoscientists British Columbia (EGBC)
2. Within the practice of professional engineering or professional geoscience, as defined in the Engineers and Geoscientists Regulation, specifically:

• Advice or services that are based on an engineering discipline
• Advice or services that are based on environmental geoscience, geology, geophysics or geochemistry, and relate to the discovery or development of oil, natural gas, coal, metallic or non-metallic minerals, precious stones, other natural resources or water or the investigation of surface or subsurface geological conditions, or
• Advice or services that are ancillary to those in the above bullets

If either of the criteria is not met (for example, you provide a service listed above but are not registered or required to be registered with EGBC), you are not providing engineering or geoscience services for PST purposes.

PST applies at the rate of 7% on the amount equal to 30% of the purchase price of engineering and geoscience services, including:

• Schematic design services
• Design development and contract document services
• Tender services

These services are generally included in categories of service 2, 3 and 4 of the Association of Consulting Engineering Companies British Columbia's (ACEC-BC's) budget guidelines for engineering services. For example, see Table 2 of ACEC-BC's Budget Guidelines for Engineering Services Document 2 – Buildings. Other engineering and geoscience services are still taxable if they meet the criteria above, unless a specific exemption applies.

Services provided by a person to their employer in the course of their employment are not engineering or geoscience services for PST purposes.

Engineering and geoscience services provided in B.C.

Engineering and geoscience 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.). 

Engineering and geoscience 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 engineering and geoscience 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.
• A project that is, or that is contemplated to be, situated in B.C.

For example, a person who resides in Alberta hires a B.C. engineer for design work on a project in B.C. The engineering services are taxable because they relate to a project that is contemplated to be situated in B.C. The person pays PST on 30% of the purchase price of the services.

Engineering and geoscience services provided outside B.C.

Engineering and geoscience 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 engineering and geoscience 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.
• A project that is, or that is contemplated to be, situated in B.C.

For example, a person who resides in B.C. hires an Alberta engineer to design a project to be situated in B.C. The engineer is registered or required to be registered with EGBC. The engineering services are taxable because they're purchased by a person who resides in B.C. and they relate to a project that is contemplated to be situated in B.C. The person pays PST on 30% of the purchase price of the services.

Engineering and geoscience 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 engineering or geoscience services provided outside B.C., from a person who is registered or required to be registered with EGBC, and the 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 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. The person pays PST on 30% of the portion of the purchase price that relates to B.C.

For example, a business purchases engineering services outside B.C. that relate to a highway infrastructure project that is located 60% in B.C. and 40% in Alberta. The business reasonably estimates that the services relate 60% to B.C. and 40% to Alberta. The business claims exemption on 40% of the total purchase price and pays PST on 30% of the 60% portion of the purchase price that relates to the project in B.C.

Charging PST on engineering and geoscience services

Effective October 1, 2026, PST applies at the rate of 7% on the amount equal to 30% of the purchase price of taxable engineering or geoscience services. For example, if you sell $100,000 of taxable engineering or geoscience services, you must charge and collect $2,100 in PST as follows:

7% × (30% × $100,000) = $2,100

If only a portion of the engineering or geoscience services is taxable, 7% PST applies to 30% of the purchase price of the taxable portion.

The purchase price includes disbursements, as explained below.

If you sell taxable engineering or geoscience 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.

Note: If you provide blueprints as part of taxable engineering or geoscience services, the blueprints are included in the purchase price. If a specific exemption applies to the services, then the blueprints are also exempt from PST.

Bundled sales

If, for a single price, you sell taxable engineering or geoscience services with non-taxable or exempt goods or services, you are making a bundled sale. The general rule for charging PST on a bundled sale is that you charge PST only on the fair market value of the taxable portion of the sale.

For example, you charge $100,000 for engineering services that include taxable schematic design services, design development and contract document services, and tender services, as well as exempt construction related services. The fair market value of the taxable services for this contract is $75,000. You charge and collect $1,575 in PST as follows:

7% × (30% × $75,000) = $1,575

Some exceptions apply. For more information, see Bulletin PST 316, Bundled Sales and Leases (PDF, 410KB).

Disbursements

Generally, disbursements are requests for the reimbursement of an out-of-pocket expense incurred by a provider of engineering or geoscience services, on behalf of a particular client, often as a result of a billing by a third party. An engineering firm may also charge clients a flat-rate disbursement recovery charge as a percentage of their fees.

Most disbursements are part of the purchase price of engineering and geoscience 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 engineering or geoscience 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 engineering or geoscience services, then they are included in the purchase price of the engineering or geoscience services.

Exemptions

Exempt categories of service

Engineering and geoscience services are exempt from PST if the engineering or geoscience services are:

• Advisory services
• Construction related services
• Resident engineering services
• Project management services
• Construction management services

These services are generally included in categories of service 1, 5, 6, 7 and 8 of ACEC-BC's budget guidelines for engineering services.

Services to design tangible personal property for retail sale

Engineering or geoscience services to design tangible personal property for the sole purpose of retail sale are exempt from PST.

Engineering and geoscience services that relate to a jurisdiction outside B.C.

Engineering and geoscience 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 engineering or geoscience 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.
• A project that is, or that is contemplated to be, situated in a jurisdiction outside B.C.

For example, a person who resides in Vancouver hires a B.C. engineer for design work on a project in Alberta. In this case, the engineering services are exempt from PST because they relate to a project that is contemplated to be situated outside B.C.

If part of the engineering or geoscience 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 business based in B.C. purchases engineering services in B.C. that relate to a highway infrastructure project that is located 60% in B.C. and 40% in Alberta. The business claims exemption on 40% of the total purchase price and pays PST on 30% of the 60% portion of the purchase price that relates to the project in B.C.

Engineering and geoscience services purchased for resale

Engineering and geoscience services you purchase solely for resale to your clients are exempt from PST. For example, your engineering firm hires a subcontractor to provide engineering services for which you will bill your client. You are purchasing the engineering services for resale, and your purchase is exempt from PST. However, you must charge your clients PST when you sell them the engineering 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).

Engineering and geoscience services provided to First Nations

Engineering and geoscience services purchased by a First Nations individual or band are exempt from PST if the engineering or geoscience 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
• A project that is, or that is contemplated to be, situated on First Nations land

The exemption does not apply to engineering and geoscience 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

Engineering and geoscience services purchased by an Aboriginal organization representing the interests of First Nations individuals and bands are exempt from PST if the engineering or geoscience 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

Engineering and geoscience services related to the consultations or negotiations listed above include engineering or geoscience services related to disputes arising from such consultations or negotiations.

Engineering and geoscience services provided to a related corporation

Corporations are exempt from PST on engineering and geoscience 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

Engineering and geoscience 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).

Engineering and geoscience services provided to the federal government

Engineering and geoscience 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).

Engineering and geoscience services purchased from a small seller

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

Registration requirements

If you sell taxable engineering or geoscience 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.

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 engineering or geoscience 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).

Reporting and paying PST

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

If you sell any taxable engineering or geoscience 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 engineering or geoscience services is paid or becomes due before October 1, 2026, PST may apply depending on when the engineering or geoscience 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 engineering and geoscience 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 engineering 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 engineering 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 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 engineering services for a project, 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 engineering 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 engineering or geoscience 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.