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, including transitional rules for services purchased or provided before 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
• Property that has not been classified under the Assessment Act
• Registration requirements
• Reporting and paying PST
• Transitional rules – Services purchased or provided before or after 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.

For information on how PST applies to accounting services provided with non-residential real estate services, see our PST on accounting services page.

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 fees are not strata management services, and 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 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.

Bundled Sales

If, for a single price, you sell taxable non-residential real estate 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 non-residential real estate 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 non-residential real estate services.

Disbursements

Generally, disbursements are requests 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, often as a result of a billing by a third party. For example, travel costs related to finding real estate for a client to acquire.

Most disbursements are part of the purchase price of non-residential real estate 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 non-residential real estate 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 non-residential real estate services, then they are included in the purchase price of the non-residential real estate services.

Exemptions

Non-residential real estate services for farmland

Non-residential real estate services provided in relation to farmland (property classified as Class 9 under the Assessment Act), or to real property on or affixed to farmland (such as buildings or other improvements), are exempt from PST. If the property is mixed-use property, only the portion of services that can reasonably be attributed to the Class 9 part of the property, or to the real property that is on or affixed to the Class 9 part of the property, are exempt from PST.

Non-residential real estate services purchased for resale

Non-residential real estate services you purchase solely for resale are exempt from PST. For example, your brokerage hires a subcontractor to provide property management services for non-residential real estate, for which you will bill your client. You are purchasing the non-residential real estate services for resale, and your purchase is exempt from PST. However, you must charge your clients PST when you sell them the non-residential real estate 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).

Non-residential real estate services provided to First Nations

Non-residential real estate services purchased by a First Nations individual or band are exempt from PST if the non-residential real estate services relate to real property situated on First Nations land.

The exemption does not apply to non-residential real estate 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

Non-residential real estate services purchased by an Aboriginal organization representing the interests of First Nations individuals and bands are exempt from PST if the non-residential real estate 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

Non-residential real estate services related to the consultations or negotiations listed above include non-residential real estate services related to disputes arising from such consultations or negotiations.

Non-residential real estate services provided to a related corporation

Corporations are exempt from PST on non-residential real estate 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

Non-residential real estate 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).

Non-residential real estate services provided to the federal government

Non-residential real estate 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).

Non-residential real estate services purchased from a small seller

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

Property that has not been classified under the Assessment Act

When non-residential real estate services are purchased in respect of newly subdivided properties that are not yet on the assessment roll, PST applies based on the class of the parent property.

For example, a property in Class 1 (Residential) is subdivided and individual condo units are sold before those units have been classified. While the condo units are not yet classified as residential, PST does not apply to the real estate commission on the sale of the units, because the parent property is Class 1.

If services are provided to an unclassified property whose parent property is classified in part as Class 1, Class 3 (Supportive Housing), or Class 9 (Farm), PST does not apply to the portion of the services that can reasonably be attributed to Class 1, Class 3, or Class 9. For example, a mixed-use property is subdivided into residential and commercial units that are sold before they have been classified. PST does not apply to the real estate commission on the sale of the residential units, because the services can reasonably be attributed to the residential portion of the parent property. PST applies to the real estate commission on the sale of the commercial units.

Property on First Nations land

Non-residential real estate services provided in relation to First Nations land that has not been classified under the Assessment Act are exempt from PST for residential, supportive housing or farm property, or for real property on or affixed to farm property (such as buildings or other improvements).

First Nations individuals and bands should refer to Non-residential real estate services provided to First Nations above. For purchasers who are not First Nations individuals or bands, to qualify for this exemption, the services must be provided to:

• Residential property that fits the description of Class 1 property in the Prescribed Classes of Property Regulation,
• Supportive housing property that is primarily used for the provision of supportive housing,
• Farm property that:
  • Is primarily used for an agricultural use set out in section 1 of the schedule to the Classification of Land as a Farm Regulation, and
  • Has generated at least $2,500 in gross annual revenue from those agricultural uses in the preceding calendar year, or
• Real property on or affixed to farm property that is on land that is exempt under the above bullet

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. 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 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 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 non-residential real estate 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 non-residential real estate services is paid or becomes due before October 1, 2026, PST may apply depending on when the non-residential real estate 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 non-residential real estate 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 non-residential property management 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 non-residential real estate 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 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, but you do not bill for the services until 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.