08/24/2026
We would like to make you aware of an important tax change announced by the Province of British Columbia that will affect businesses purchasing professional services, including accounting services. Effective October 1, 2026, Provincial Sales Tax (PST) of 7% will apply to accounting services, including bookkeeping, assurance, tax, advisory, and other accounting-related services.
PST will also now be applied to other professional services including architectural services, engineering and geoscience services, securities services, and non-residential real estate services. Unless specifically exempted, the tax will apply to services provided to BC residents, persons operating business in BC, and/or transactions related to BC. For businesses operating in, or transactions, across multiple jurisdictions, the tax should be prorated based on a reasonable estimate of the portion that relates to BC.
You can find the official notice on the Government of British Columbia’s website.
For many businesses, this represents a new cost on professional services that were previously not subject to PST. Unlike GST, PST is generally not recoverable through input tax credits, meaning it may increase the overall cost of obtaining professional services. As a result, invoices for services provided on or after October 1, 2026 will generally include PST where required by the legislation.
What This Means for Your Business
Beginning October 1, 2026:
• Accounting and bookkeeping services will generally be subject to 7% PST.
• Businesses purchasing professional services may experience higher costs due to the addition of unrecoverable PST.
• Ongoing projects, consulting engagements, year-end work, tax planning initiatives, and other professional services may be affected depending on when services are performed and invoiced.
Practical Steps to Consider Before October 1
With the implementation date approaching, businesses may wish to consider:
✅ Advancing planned projects or consulting work where possible before October 1, 2026.
✅ Reviewing budgets and forecasts to account for the increased cost of professional services going forward.
✅ Discussing the timing of significant engagements with your advisor to understand how the transitional rules may apply.
✅ Evaluating cash flow impacts, particularly for businesses that regularly engage accountants, engineers, architects, security providers, or other newly taxable professional service providers.
How This Affects Our Fees
While our professional fees are not changing as a result of this legislation, the application of PST means that the total amount payable on future invoices will increase by the applicable tax. We wanted to provide advance notice so that you can incorporate this change into your budgeting and planning processes well before the October 1 effective date.
As additional guidance is released by the Province, we will continue to monitor developments and advise clients of any significant updates.
Thank you for your continued trust and partnership.
The Simply Balanced Team
