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British Columbia sales tax is two taxes, not one: 5% federal GST and 7% provincial PST on most goods and services. On $1,000 of taxable sales, that’s $50 and $70, so customers pay $1,120. If you run a business in BC, you’ll deal with both, and you’ll report them to two different places.
How does British Columbia sales tax work for a business?
GST is the federal tax, and the CRA administers it. PST is the province’s own tax. The two are separate, which is why BC is called a non-participating province in the CRA’s rate table. Ontario, by contrast, has one blended HST.
The BC government describes the PST rate as generally 7% of the purchase or lease price of goods and services, with some exceptions.
Generally, the rate of PST is 7% on the purchase or lease price of goods and services, with some exceptions.
B.C. provincial sales tax (PST), gov.bc.ca
Businesses also pay PST on many things they buy for their own use, unless an exemption applies. That’s a point people miss: PST isn’t only something you collect, it can also be something you owe on your own purchases.
| Where | Tax on $1,000 of taxable sales | Total |
|---|---|---|
| British Columbia (GST and PST) | $50 GST, $70 PST | $1,120 |
| Alberta (GST only) | $50 GST | $1,050 |
| Ontario (HST) | $130 HST | $1,130 |
What about the tax you pay on your own purchases?
Say Tariq runs a small renovation outfit in Surrey and buys $4,000 of equipment for his own use. That carries $200 of GST and $280 of PST. As a GST registrant he can usually claim the $200 back as an input tax credit on his return. PST doesn’t have the same refund system, so the $280 is generally a real cost unless an exemption applies to what he bought. Always ask the seller why PST was or wasn’t charged, and keep the invoice.
Do I need to register to collect PST?
BC says you must register if you sell or lease taxable goods, or provide software or taxable services, in the ordinary course of your business in BC. A business based outside the province may also have to register when it sells to BC customers.
What we couldn’t confirm is a sales threshold. The registration page we read names none, and it points small sellers to a separate bulletin for cases where registering is optional. So don’t borrow the GST small-supplier idea and assume it applies to PST. Read BC’s own registration guidance first.
What does the calculator say about a real sale?
Say you invoice $2,500 for equipment. The GST and PST calculator shows $125 of GST and $175 of PST, $300 in all, for a $2,800 invoice. The GST is figured on the price without the PST, which is the CRA’s rule when PST is charged.
Going the other way, when a supplier gives you a tax-included price of $1,120, the reverse tax calculator splits it into $1,000, $50 and $70. Handy when you’re sorting receipts.
Comparing BC with a province that has a single rate? The GST and HST calculator takes the same $1,000 and shows the difference in a few seconds.
Where does PST trip businesses up?
Exemptions are the main one. Some items carry GST but no PST, and a few are the other way round. Our calculator applies 12% to everything in BC, so on an exempt item it overstates the tax. Check your invoice lines against BC’s list instead of trusting one blanket rate.
Next is timing. BC recommends its eTaxBC online system for filing and paying. Put the filing dates for both taxes in one calendar, because a missed PST return isn’t fixed by paying the GST on time.
Then there’s the cash. Tax you collect isn’t your money. It sits in your account until you send it in, and a business that spends it will feel that at filing time. Some owners open a separate account for it.
Payroll is a third stream of remittances. If you have staff, the payroll remittance calculator estimates what to send in each pay period, and the corporate tax calculator covers the income tax side if you’re incorporated.
The sources behind this page
The 5% GST and 7% PST come from the Canada Revenue Agency‘s GST/HST rates page and the Government of British Columbia’s PST pages, read in September 2026. This website is independent and has no connection with the CRA, the province or any other government body. Rates and exemptions change, so check the official pages before you file.
Frequently asked questions
What is the sales tax rate in British Columbia?
Most goods and services carry 5% GST and 7% PST, which is 12% in total. Some items have one tax but not the other.
Is BC PST the same as HST?
No. BC keeps GST and PST separate. Ontario and the Atlantic provinces use a single blended HST.
Who has to register for PST in BC?
BC says businesses that sell or lease taxable goods, or provide software or taxable services, in the ordinary course of business in BC. Some out-of-province sellers must too.
Is there a PST sales threshold for small businesses?
The registration page we read does not state one, so check BC's guidance before deciding you can skip it.
How do I file PST?
BC recommends its eTaxBC online system for filing and paying PST.
- GST, HST, PST and QST explained for every province
Which GST, HST, PST or QST applies where you shop or sell in Canada, the 2026 rates for every province, who must register and how to add or remove tax
- British Columbia income tax and PST in 2026
How British Columbia income tax works in 2026: seven brackets starting at 5.6%, the tax reduction credit, the 7% PST and the BC calculators