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Updates to sales taxes

Last updated on February 26, 2026

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Provincial sales tax (includes municipal and regional district tax)

February 25, 2026

Bulletin CTB 005, Penalties and Interest (PDF, 210KB), has been updated to:

  • Add information to explain how the additional penalties for carbon tax, motor fuel tax and PST (including the municipal and regional district tax) that came into effect on July 1, 2024, may be applied
  • Include additional information about what may be required when you make a voluntary disclosure for PST or tobacco tax

February 17, 2026

The provincial government announced its 2026 Budget on February 17, 2026. Programs administered by the Consumer Taxation Programs Branch are amended as a result. Learn more at B.C. Provincial budget tax changes.

February 5, 2026

Effective November 1, 2025, the District of Sooke began collecting the Municipal and Regional District Tax (MRDT) at the rate of 3%. Effective March 1, 2026, the District of Summerland will be collecting the MRDT at the rate of 3%. The MRDT location map has been updated. For more information about MRDT, see our Accommodation page.

January 15, 2026

Bulletin PST 307, Goods Brought Into B.C. for Temporary Use (PDF, 410KB), has been updated to:

  • Clarify that the provincial portion of HST is considered other sales tax for the purposes of calculating the maximum tax payable
  • Note that equipment mounted to a vehicle, vessel, or railway rolling stock has a PST rate of 7% of the purchase price
  • Add an example of goods no longer in B.C. for temporary use in the PST Due if Goods No Longer for Temporary Use section
  • Clarify what constitutes “B.C. tax previously paid” in the Examples of Calculating the PST Due section
  • Revise Example 1 to refer to Alberta instead of Ontario, add a maximum tax payable calculation, and correct the PST payable in the third 12-month period
  • Add Example 3 where no PST is payable due to other sales tax paid

FIN 402, Temporary Use Remittance Return (PDF, 370KB), has been updated to:

  • Add form fields and revise instructions for B.C. Tax Previously Paid, Other Sales Tax, Total 1/3 (or 1/36) Formula Tax Previously Payable on Item, and Maximum Tax Payable to align with the FIN 402 excel schedule and assist users with calculations
  • Clarify that PST under the Provincial Sales Tax Act is not part of other sales tax

See previous years in Archived tax updates.

Motor fuel tax and carbon tax

February 26, 2026

Bulletin MFT-CT 002, Sales to First Nations and the Fuel Tax Exemption Program, is now web content. You can find the new page at Motor fuel tax exemption on sales to First Nations. Please update your bookmarks to the new location on our website. This page has also been revised to:

  • Update terminology relating to Indigenous Peoples
  • Incorporate information on the reinstatement or continuation of the treaty tax exemption for eligible treaty beneficiaries
  • Clarify documentation requirements for tax-exempt sales to First Nations individuals and bands, including that:
    • Sellers may accept an expired status card or expired Temporary Confirmation of Registration Document (TCRD), if the individual provides an additional piece of government-issued photo identification
    • If an individual presents a valid status card or TCRD when purchasing an ongoing service (e.g. scheduled fuel deliveries), sellers are not required to ask for an updated status card or TCRD after it expires
    • NEW: Sellers are no longer required to obtain customer signatures for the following:
      • For tax-exempt fuel deliveries to First Nations individuals or bands on First Nations land
      • When verifying total tax-exempt cardlock sales with the access cardholder after month end
  • Reflect the elimination of carbon tax effective April 1, 2025

The FIN 412/2, Schedule of Sales of Tax-Exempt Fuels to First Nations (PDF, 290KB) and FIN 412/2, Instructions for Completing the Schedule of Sales of Tax-Exempt Fuels to First Nations (PDF, 250KB) have been revised to remove references to carbon tax and:

  • Clarify documentation requirements for tax-exempt sales to First Nations individuals and bands, including that: 
    • Sellers may accept an expired status card or an expired or valid TCRD, if the individual provides an additional piece of government-issued photo identification
    • NEW: Sellers are no longer required to obtain customer signatures for the following:
      • For tax-exempt fuel deliveries to First Nations individuals or bands on First Nations land
      • When verifying total tax-exempt cardlock sales with the access cardholder after month end

February 25, 2026

Bulletin CTB 005, Penalties and Interest (PDF, 210KB), has been updated to:

  • Add information to explain how the additional penalties for carbon tax, motor fuel tax and PST (including the municipal and regional district tax) that came into effect on July 1, 2024, may be applied
  • Include additional information about what may be required when you make a voluntary disclosure for PST or tobacco tax

See previous years in Archived tax updates.

Tobacco tax

February 25, 2026

Bulletin CTB 005, Penalties and Interest (PDF, 210KB), has been updated to:

  • Add information to explain how the additional penalties for carbon tax, motor fuel tax and PST (including the municipal and regional district tax) that came into effect on July 1, 2024, may be applied
  • Include additional information about what may be required when you make a voluntary disclosure for PST or tobacco tax

January 12, 2026

The Retailing tax-exempt tobacco page has been revised to:

  • Update terminology related to Indigenous Peoples
  • Provide additional information about the Tobacco and Fuel Tax Exemption Simplification system (TAFT)

The Reporting requirements for tax-exempt tobacco page has been updated to add a reference to TAFT.

See previous years in Archived tax updates.