PST on non-residential real estate 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 non-residential real estate services provided on or after October 1, 2026.

On this page

• What are non-residential real estate services?
• Non-residential real estate services for real property in B.C.
• Non-residential real estate services for real property in B.C. and another jurisdiction
• Charging PST on non-residential real estate services
• Exemptions
• Registration requirements
• Transitional rules – Services purchased or provided before October 1, 2026

What are non-residential real estate services?

Non-residential real estate services are services that are both:

1. Provided by a person who is licensed or required to be licensed under the Real Estate Services Act
2. Real estate services, as defined in the Real Estate Services Act, specifically:

• Rental property management services for non-residential real estate
• Strata management services for non-residential real estate, or
• Trading services for non-residential real estate

If either of the criteria is not met, you are not providing non-residential real estate services for PST purposes.

The services listed above are further defined in the Real Estate Services Act. For example, trading services include showing real estate and finding real estate for a client to acquire. Real estate commissions and fees on the sale or lease of non-residential real estate are taxable as non-residential real estate services.

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

Services that are not non-residential real estate services

Non-residential real estate services do not include:

• Services provided in relation to residential property (property entirely classified as Class 1 (Residential) and/or Class 3 (Supportive Housing) under the Assessment Act)
• Services provided in relation to real property located outside B.C.
• Services provided by a person to their employer in the course of their employment
• Services in relation to which a person is not required to be licensed under the Real Estate Services Act

Non-residential real estate services also do not include the following for PST purposes:

• Rents paid in respect of real property (landlords do not charge and collect PST on rent)
• Strata fees (strata corporations do not charge and collect PST on their strata fees)
• Providing in-person real estate training, courses or professional development. For information on educational services provided remotely, see our Telecommunication services page

Non-residential real estate services for real property in B.C.

Non-residential real estate services provided in relation to real property located in B.C. are subject to PST, unless a specific exemption applies.

For example, a commercial real estate brokerage charges commission on the sale of a property classified as Class 5 (Light Industry) in Vancouver. The commission is taxable because it's a non-residential real estate service that relates to real property in B.C.

Non-residential real estate services for real property in B.C. and another jurisdiction

If a person purchases non-residential real estate services in relation to real property located in B.C. and real property located 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 non-residential real estate 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 business purchases property management services for its industrial properties in both B.C. and Alberta from a property management brokerage licensed or required to be licensed in B.C. The business reasonably estimates that the services relate half to its properties in B.C. and half to its properties in Alberta. The business claims exemption on 50% of the total purchase price and pays PST on the 50% portion of the purchase price that relates to its properties in B.C.

Charging PST on non-residential real estate services

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

If you sell taxable non-residential real estate 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.

Note: If the non-residential real estate services are provided in relation to a property that's classified in part as Class 1 (Residential) or Class 3 (Supportive Housing), the purchase price does not include the portion that can reasonably be attributed to services provided in relation to the Class 1 or Class 3 part of the property.

For example, a business purchases strata management services for a property that's classified as 60% commercial and 40% residential, based on square footage. The business reasonably attributes 40% of the services to the residential part of the property. The business pays PST on the 60% portion of the services attributed to the commercial part of the property.

Fees and charges

Fees and charges for non-residential real estate services, other than those excluded by regulation, are part of the purchase price of non-residential real estate services. Once the PST regulations related to non-residential real estate services are complete, we will publish more details on what fees and charges are excluded from the purchase price of non-residential real estate 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 non-residential real estate services, on behalf of a particular client, as a result of a billing by a third party. For example, travel costs related to finding real estate for a client to acquire. 

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

Exemptions

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

Registration requirements

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

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 non-residential real estate 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).

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 non-residential real estate 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 non-residential property management 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 non-residential property management 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 non-residential property management 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 non-residential real estate 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 non-residential real estate 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.