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

On this page

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

What are security services?

Security services are services provided by a person who holds or is required to hold a security business licence for any of the following security businesses, as defined in the Security Services Act:

• Armoured car guard service
• Private investigator
• Security alarm service
• Security consultant
• Security guard service

If a person licensed or required to be licensed for one or more of the above businesses also provides services that do not relate to those licences (for example, if a licensed security guard service also offers locksmith services), the services that do not relate to one or more of the above licences are not considered security services for PST purposes. The services may nevertheless be taxable under different provisions.

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

• Services provided by a person to their employer in the course of their employment
• Bailiff service fees
• Process service fees

Security services provided in B.C.

Security 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.). 

Security 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 security services relate to:

• Real property situated in B.C.
• Tangible personal property that is ordinarily situated in or delivered in B.C.
• Tangible personal property that is contemplated to be ordinarily situated in or delivered in B.C. (for example, security services for the planned delivery of artwork to a gallery 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. (or a contemplated one)
• An activity or transaction in B.C. (or a contemplated one)

For example, a person who resides in Alberta hires a B.C. security alarm monitoring service to monitor alarms at their vacation property in Kelowna. The security services are taxable because they relate to real property in B.C.

Security services provided outside B.C.

Security 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 security services relate to:

• Real property situated in B.C.
• Tangible personal property that is ordinarily situated in or delivered in B.C.
• Tangible personal property that is contemplated to be ordinarily situated in or delivered in B.C. (for example, security services for the planned delivery of artwork to a gallery 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. (or a contemplated one)
• An activity or transaction in B.C. (or a contemplated one)

For example, a person who resides in B.C. hires an Alberta security alarm monitoring service, which holds or is required to hold a security business licence in B.C., to monitor alarms at the person's properties in B.C. The security services are taxable because they're purchased by a person who resides in B.C. and relate to real property in B.C. ​

​Security 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 security services provided outside B.C., and the security 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 security 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 security consulting services outside B.C. The services relate to a matter that affects all its stores across Canada, 80% of which are not in B.C., and are provided by a person who holds or is required to hold a security business licence for security consulting in B.C. Because 20% of the chain's stores are in B.C., the chain reasonably estimates that the services relate 20% to B.C. and 80% to the rest of Canada. The chain claims exemption on 80% of the total purchase price and pays PST on the 20% portion of the purchase price that relates to its stores in B.C.

Charging PST on security services

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

If you sell taxable security 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 security 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 security 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 security services.

Disbursements

Generally, disbursements are requests for the reimbursement of an out-of-pocket expense incurred by a provider of security services, on behalf of a particular client, often as a result of a billing by a third party. For example, a private investigator pays a fee to access a database and recovers the fee from their client as a disbursement. 

Most disbursements are part of the purchase price of security 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 security services: 

• Travel 
• Food 
• Accommodation
• Towing 

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

Security alarm monitoring services

Generally, security alarm monitoring services include a monitoring centre that's alerted when the client’s security system is set off. In some cases, the monitoring centre will dispatch a security guard or notify the police. There is usually a monthly or yearly fee for the monitoring services.

If you sell stand-alone monitoring services on or after October 1, 2026, you must charge and collect PST on the sale, unless a specific exemption applies. You must also charge and collect PST on any software or telecommunication services you provide to your client as part of your monitoring services (see examples below).

For information on how PST applies to the sale, installation and servicing of security systems, see our How PST applies to security systems page.

Example 1 – You provide security alarm monitoring services for your client

You provide your client with a monitoring service that alerts your monitoring centre when your client’s security system is set off. The alarm system uses your client’s existing telephone line to send the signal to your monitoring centre. You must charge and collect PST on your monitoring service.

Example 2 – Your client manages their security system through a mobile app

You provide your client with a mobile app that allows them to manage their security system remotely using their cell phone. For example, they can arm or disarm their security system using the app. By providing your client with the right to use the app, you're providing them with the right to use software, which is subject to PST. Unless an exemption applies, you must charge and collect PST (at the rate of 7%) on any charge for the right to use the app.

If you charge your client a single price for security alarm monitoring services and the right to use the app, and no exemption applies, you must charge and collect PST (at the rate of 7%) on that single price, as both the security services and the software are taxable.

Learn more about PST on software.

Example 3 – Your client sends and receives messages through their security system using a cellular link

You provide your client with the ability to send and receive messages through their security system using a cellular link (because your client does not have a telephone landline). When your client’s security system is set off, a cellular link is established allowing your client to use the security system control panel in their home for two-way voice communication with an agent in your monitoring centre. The control panel is ordinarily situated in B.C. In this case, you are providing your client with telecommunication services, which are subject to PST. Unless an exemption applies, you must charge and collect PST (at the rate of 7%) on any charge for the telecommunication services.

If you charge your client a single price for security alarm monitoring services and two-way voice communication, and no exemption applies, you must charge and collect PST (at the rate of 7%) on that single price, as both the security services and the telecommunication services are taxable.

Learn more about PST on telecommunication services.

Exemptions

Security alarm services other than security alarm monitoring

Security alarm services other than the service of monitoring a security alarm installed on the property of another person are exempt from PST. Monitoring a security alarm installed on the property of another person is subject to PST as a security service unless another exemption applies.

Note: Security alarm services such as selling, advising on, installing, repairing, and maintaining security alarms are not subject to PST as security services. The sale, installation and servicing of security systems may be subject to PST under other PST rules. For information on how PST applies to the sale, installation and servicing of security systems, see our How PST applies to security systems page.

House sitting services

Security services provided to monitor an individual's private residence, by a person temporarily residing in the residence when the individual is absent, are exempt from PST.

For example, a person hires a licensed security guard service to provide live-in security guard services at their home for two weeks while they are out of the country. The live-in security guard services are exempt from PST.

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

Security 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 security 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. (or a contemplated one)
• An activity or transaction in a jurisdiction outside B.C. (or a contemplated one)

For example, a person who resides in Vancouver hires a B.C. security alarm monitoring service to monitor alarms at their vacation property in Alberta. In this case, the security services are exempt from PST because they relate to real property outside B.C.

If part of the security 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 security consulting services in B.C. The services relate to a matter that affects all its stores across Canada, 20% of which are in B.C., and are provided by a person who holds or is required to hold a security business licence for security consulting in B.C. Because 80% of the chain's stores are outside B.C., the chain claims exemption on 80% of the total purchase price and pays PST on the 20% portion of the purchase price that relates to its stores in B.C.

Security services purchased for resale

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

Security services provided to First Nations

Security services purchased by a First Nations individual or band are exempt from PST if the security 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 (or a contemplated one)
• An activity or transaction on First Nations land (or a contemplated one)

The exemption does not apply to security 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

Security services purchased by an Aboriginal organization representing the interests of First Nations individuals and bands are exempt from PST if the security 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

Security services related to the consultations or negotiations listed above include security services related to disputes arising from such consultations or negotiations.

Security services provided to a related corporation

Corporations are exempt from PST on security 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

Security 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).

Security services provided to the federal government

Security 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).

Security services purchased from a small seller

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

Registration requirements

If you sell taxable security 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 security 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 security 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 security services is paid or becomes due before October 1, 2026, PST may apply depending on when the security 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 security 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 security 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 security 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 security 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 security 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 security 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.