British Columbia Sales Tax (GST + PST) Guide (2026)

British Columbia layers the 5% federal GST and a 7% provincial sales tax (PST) for a combined 12%. The two are separate: the CRA administers the GST, and the BC Ministry of Finance administers the PST, so businesses file two returns.

British Columbia has two registration triggers rather than US-style economic nexus. Register for GST/HST with the CRA once taxable revenue exceeds CAD $30,000 over four consecutive calendar quarters [1]. Register for BC PST if your business is located in the province, or, if located elsewhere in Canada, as soon as you sell and deliver taxable goods (or provide software or telecommunication services) to BC customers while soliciting BC orders, regardless of revenue, or otherwise once your gross revenue from goods, software, and telecommunication services sold to BC customers exceeds CAD $10,000 in the past or next 12 months; sellers outside Canada face the CAD $10,000 test for software and telecommunication services, and must register when they hold goods in BC inventory [4]. Registration steps are in the How to Register section.

GST returns follow the CRA schedule (monthly, quarterly, or annual), due one month after the period for monthly and quarterly filers. BC PST returns are filed through eTaxBC, generally due the last day of the month following the reporting period.

Basic groceries and prescription drugs are zero-rated for GST and exempt from BC PST. British Columbia PST applies to software and telecommunication services, so SaaS is generally taxable in BC in addition to the federal GST.

British Columbia lets a business buy goods for resale without PST by providing its PST number or an exemption certificate to the supplier [6]. The GST paid on business inputs is recovered through input tax credits, but PST paid is not recoverable [9]. Basic groceries and children's clothing are also PST-exempt [6].

Late GST carries the CRA penalty (1% of the amount owing plus 25% of that per month, up to 12 months, plus interest). Late BC PST carries its own provincial penalties, 5% of the amount owing plus 1% per month (up to 12 months) for a late return and 10% for late payment, plus interest.

The CRA audits the GST portion; dispute a GST assessment by filing a Notice of Objection (Form GST159) within 90 days, then appeal to the Tax Court of Canada [11]. British Columbia audits the PST; you can appeal a PST assessment to the Minister of Finance within 90 days of the decision [8].

• [1] Canada Revenue Agency — When to register for and charge GST/HST ($30,000 threshold)

• [2] Canada Revenue Agency — GST/HST for digital economy businesses

• [3] Government of British Columbia — Provincial Sales Tax (7%)

• [4] Government of British Columbia — Register to collect PST ($10,000 out-of-province threshold)

• [5] Government of British Columbia — PST on software and SaaS

• [6] Government of British Columbia — PST exemptions (groceries, children's clothing, goods for resale)

• [7] Government of British Columbia — Report and pay PST

• [8] Government of British Columbia — Appeal a PST assessment

• [9] Canada Revenue Agency — Type of supply (zero-rated groceries, input tax credits)

• [10] Government of British Columbia — Notice 2026-001: Notice to providers of professional services (PST on professional services from October 1, 2026)

• [11] Canada Revenue Agency — File an objection (GST/HST)

Verified July 2026 against Canada Revenue Agency and Government of British Columbia guidance.