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British Columbia GST: Rate, Rules and PST Stacking

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British Columbia GST is the same 5% federal tax charged everywhere else in Canada. BC isn’t an HST province, so the GST stands alone on your receipt and the 7% provincial sales tax (PST) is added beside it. On a taxable $100 item you’d pay $5 GST and $7 PST, for $112.

Is the GST charged on the PST in BC?

No, and people ask this a lot. The CRA is clear that if PST is charged where the sale happens, the GST is worked out on the price without the PST. So there’s no tax on tax. Both percentages apply to the same starting price, which is why the combined rate on a full-tax item is 12% and not 12.35%.

Here are a few prices to show it. The numbers come from the same maths the GST and PST calculator uses.

Price before tax GST 5% PST 7% Total
$100 $5.00 $7.00 $112.00
$1,000 $50.00 $70.00 $1,120.00
$2,000 $100.00 $140.00 $2,240.00

Those rows only apply when both taxes apply. That catches people out, and the calculator has the same blind spot: it taxes everything at 12% for BC, so it overstates the bill on anything with less PST or none.

What doesn’t carry GST in BC?

The CRA says basic groceries are zero-rated, at 0% GST in every province and territory. So a bag of flour in Kamloops has no GST. There are also exempt supplies, which a business can’t charge tax on at all, and the CRA keeps a separate page on types of supply. For PST, the province says there are specific exemptions for some goods and services and sends you to its own detail pages. We didn’t copy that list, because it’s long and it changes.

The two taxes don’t match, and that is the reason to check each one. A zero-rated item for GST can still be subject to PST, and the opposite is possible too.

Does a BC small business have to charge GST?

That turns on sales. Under the CRA’s small supplier rule you can skip registration while taxable sales stay at or below $30,000 across four consecutive calendar quarters. Once you pass it, you register within 29 days of losing small supplier status. You can also sign up early.

PST is its own registration. The BC government says not every business has to register to collect it, and it offers guidance to help you decide. So a seller can owe one, both or neither. Someone who lands a first big sale should check both lists instead of assuming that one registration covers the other.

One current item for service businesses: the province says the planned expansion of PST to accounting, architectural, engineering, geoscience, non-residential real estate and security services is paused, as of September 2026. Don’t budget for PST on those services based on old news reports.

How do I take GST and PST out of a price?

When the sticker already includes tax, divide by 1.12 for an item with both. A price of $1,120 was $1,000 before tax. For a quick check on a different kind of province, the GST and HST calculator covers all of them, and the reverse calculator goes from total to base price.

Common mistakes with BC sales tax

The first is treating BC as an HST province. It isn’t. The second is adding 12% to everything, including groceries. The third is forgetting that a home purchase has its own federal GST rules. If you’re buying new, read the new housing rebate calculator notes first, because BC property transfer tax exemptions aren’t modelled there.

Where the numbers come from

GST and its small supplier threshold come from the Canada Revenue Agency. The 7% PST and the paused expansion come from the BC government’s PST page, read in September 2026. This site isn’t connected to either body.

Frequently asked questions

What is the GST rate in British Columbia?

5%, the same as most of Canada. BC also charges 7% PST on many goods and services.

Is GST charged on top of PST in BC?

No. The CRA says GST is worked out on the price without the PST.

Are groceries taxed in BC?

Basic groceries are zero-rated for GST, so no GST is charged on them.

Do I need to register for GST in BC?

Only if taxable sales pass $30,000 over four consecutive calendar quarters, or you are a special case such as a taxi driver.

Is BC expanding PST to services?

The province says the expansion to accounting, architectural, engineering and some other services is paused as of September 2026.

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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.

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