Is PST charged on top of GST in BC?

No, in BC both PST and GST are calculated separately on the original purchase price. Quebec's QST works the same way — calculated on the subtotal only since 2013.

What items are PST exempt in BC?

Many items are PST-exempt in BC including basic groceries, prescription medications, children's clothing and footwear, books, and bicycles. GST may still apply to some of these items.

️ British Columbia Tax Calculator

BC Sales Tax Calculator 2026 — 7% PST + 5% GST

BC charges 12% total tax: 7% PST + 5% GST. Enter any amount to get an instant breakdown, or reverse-calculate from a total.

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12% Total Tax

Federal GST

BC PST

12%

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Quick Answer: BC sales tax is 12%

$100 purchase PST $7.00 + GST $5.00 $112.00 total

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Calculate BC Sales Tax

Enter any amount to calculate GST + PST instantly

Amount Before Tax ($CAD)

Subtotal $0.00

GST (5%) $0.00

PST (7%) $0.00

Total $0.00

$0.00 + 5% GST + 7% PST = $0.00

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Understanding BC Sales Tax

British Columbia uses a dual tax system with federal GST and provincial PST applied separately to most goods and services.

GST vs PST in BC

BC charges two separate taxes: 5% federal GST and 7% provincial PST. Unlike HST provinces, these taxes are calculated separately on the original amount. Learn more about calculating GST on invoices.

PST Registration

If you sell taxable goods or services in BC, you must register for PST. Unlike GST (which has a $30,000 threshold), there's no small supplier exemption for BC PST. See our invoice requirements guide.

PST-Exempt Items

Many items are PST-exempt in BC: basic groceries, children's clothing, books, bicycles, and prescription medications. Use our invoice generator to handle tax-exempt items correctly.

BC Sales Tax Examples

Quick reference for common amounts (5% GST + 7% PST = 12%)

Amount	GST (5%)	PST (7%)	Total
$50.00	$2.50	$3.50	$56.00
$100.00	$5.00	$7.00	$112.00
$250.00	$12.50	$17.50	$280.00
$500.00	$25.00	$35.00	$560.00
$1,000.00	$50.00	$70.00	$1,120.00
$5,000.00	$250.00	$350.00	$5,600.00

BC PST for Business Owners: What You Need to Know

BC's Dual-Tax System vs HST Provinces

British Columbia is one of four provinces that uses a separate GST + PST system rather than a single harmonized sales tax. The other GST+PST provinces are Saskatchewan (6% PST) and Manitoba (7% RST). BC briefly adopted HST from July 2010 to March 2013, but voters rejected it in a 2011 referendum — the first time a province reversed an HST adoption. For businesses, the dual-tax system means tracking two separate tax obligations: federal GST filed with the Canada Revenue Agency, and provincial PST filed with the BC Ministry of Finance. While this adds administrative overhead compared to single-tax provinces like Ontario (13% HST), it also means PST-exempt items only carry the 5% federal rate.

PST on Digital Products and SaaS

Since April 2021, BC applies PST to software, including software as a service (SaaS), cloud-based subscriptions, and digital downloads. If your business purchases accounting software, project management tools, or design applications, you pay 7% PST on those subscriptions. This also means BC-based SaaS companies must collect PST from their BC customers. If you sell digital products to customers in other provinces, the PST rules of the customer's province apply — an important consideration for Vancouver tech companies with a national customer base.

PST on Vehicles and Equipment

Vehicles purchased in BC carry 7% PST on the purchase price for most vehicles, with higher rates for luxury vehicles: 10% on vehicles priced $55,000-$124,999, and 15% on vehicles $125,000 and above. For businesses claiming Capital Cost Allowance (CCA), the non-recoverable PST is added to the asset's cost base. A $50,000 work truck costs $53,500 after PST, and the full $53,500 enters your CCA Class 10 pool for depreciation.

Accommodation Tax in BC Cities

Accommodation in BC carries an additional layer beyond the standard 8% PST (higher than the usual 7% for goods). Many municipalities also levy a Municipal and Regional District Tax (MRDT) of 2-3%, bringing the total tax on a hotel room to 15-16% (5% GST + 8% PST + 2-3% MRDT). For business owners claiming travel expenses, these taxes are handled differently: the GST portion is recoverable as an ITC, but the PST and MRDT are non-recoverable costs that flow directly to your travel expense category.

Small Business Commission on PST Collected

BC offers a small incentive for PST collectors: businesses can retain a commission on the PST they collect and remit. The commission is calculated as a percentage of the PST collected during the reporting period. While the amount is modest, it partially offsets the administrative burden of collecting and remitting provincial sales tax. To qualify, you must file your PST returns and make payments on time.

BC PST FAQs

What is the PST rate in BC?

BC's PST (Provincial Sales Tax) rate is 7%. Combined with the 5% federal GST, the total sales tax in British Columbia is 12%. This rate applies uniformly across all BC cities including Vancouver, Victoria, Surrey, and Kelowna. For automatic GST + PST on every invoice with PST-exempt handling for services, see our BC invoice software.

How do I calculate BC sales tax?

To calculate BC sales tax, apply both taxes to the original amount: GST = Amount × 5%, PST = Amount × 7%. For example: $100 × 5% = $5 GST, $100 × 7% = $7 PST. Total = $100 + $5 + $7 = $112.

Is PST calculated on top of GST in BC?

No, BC's PST is calculated on the original purchase price, not on the GST-included amount. Both taxes are applied separately to the subtotal. Quebec's QST also applies to the subtotal only (since 2013).

What items are exempt from BC PST?

BC exempts many items from PST including: basic groceries, prescription drugs, children's clothing and footwear (sizes 0-15), books, newspapers, bicycles, and safety equipment. Note that GST may still apply to some exempt items.

Why doesn't BC have HST?

BC briefly had HST from 2010-2013 but reverted to GST+PST after a public referendum. British Columbians voted to return to the separate tax system, which is what's in place today.

Do I need to register for BC PST?

If you sell or lease taxable goods in BC, provide taxable services, or purchase goods for use in BC from outside the province, you must register for PST with the BC Ministry of Finance. Unlike GST, there is no small supplier exemption — registration is required regardless of revenue. Online sellers shipping into BC must also register if they exceed $10,000 in BC sales.

Can I claim BC PST as an Input Tax Credit?

No. Unlike federal GST, BC PST is not recoverable through Input Tax Credits. PST paid on business purchases is a direct cost that flows to your expense accounts. This is a key difference from HST provinces (like Ontario), where the full harmonized tax is recoverable. You can, however, deduct PST paid on business expenses as part of your income tax deduction.

How often do I file BC PST returns?

BC PST filing frequency depends on your annual PST collected: businesses collecting more than $12,000 per year file monthly, those collecting $6,000-$12,000 file quarterly, and those collecting under $6,000 file annually. Returns are filed with the BC Ministry of Finance, separately from your federal GST return filed with the CRA.

Does PST apply to services in BC?

Most services in BC are PST-exempt, including professional services (legal, accounting, consulting), health care services, and educational services. However, some services are taxable: telecommunications, software as a service (SaaS), accommodation under 27 nights (8% PST + 3% Municipal and Regional District Tax in some areas), and legal services related to property transfers. Always verify the taxability of your specific service category with the BC Ministry of Finance.

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