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 provided on or after 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
• Transitional rules – Services purchased or provided before 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

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

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. 

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, 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. (or a contemplated one)
• Any 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, 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. (or a contemplated one)
• Any 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 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 the PST, unless a specific exemption applies. For information about sales made before October 1, 2026, see the transitional rules below.

Fees and charges

Fees and charges for security services, other than those excluded by regulation, are part of the purchase price of security services. Once the PST regulations related to security services are complete, we will publish more details on what fees and charges are excluded from the purchase price of security 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 security services, on behalf of a particular client, 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. 

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

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's 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. You're 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

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

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.

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 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 security 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 security 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 security 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 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. You bill for the services on 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.