Updated Checked by the Tax-Services.ca editorial team How we check
If you sell taxable goods or services in BC, you usually have to register, collect provincial sales tax and send it to the province. The BC government’s registration page shows no revenue threshold, which surprises people who know the GST small supplier rule, though it does list some small sellers among the businesses that don’t have to register.
So where does the PST sit next to the GST you already know about? Separately. Two taxes, two registrations, two sets of rules.
Do I have to register to collect provincial sales tax?
The BC registration page lists activities, not a sales figure. You need to register if you’re in BC and you sell taxable goods (it names alcoholic beverages, boats, building materials, cannabis products and motor vehicles among others), lease taxable goods, or provide certain services. It also covers online marketplace services, telecommunication services and software. The province’s page on registering to collect PST has the full list, including special cases for out-of-province sellers.
The page also says something that matters if you’ve been putting it off. Not registering doesn’t remove the duty to collect and remit. You’re still treated as a collector, and the obligations are the same. Online registration takes roughly 15 to 25 minutes to fill in and can take up to 21 business days to process, so don’t leave it until the week of your first sale.
Picture Maya, who starts selling handmade furniture out of a garage in Kelowna. Furniture is a taxable good, and the page gives no dollar figure she can point to as her safe zone. Whether she counts as a small seller who doesn’t have to register is a question for the province’s small seller bulletin, so she’d read it before her first sale, not after the first customer asks for a receipt.
How is this different from the GST threshold?
For GST/HST, the CRA says most businesses are small suppliers if their taxable sales stay at or under $30,000 across four consecutive calendar quarters. Stay under and you aren’t required to register. You can still do it voluntarily.
PST doesn’t hand you that same comfortable number on the page we read. It does list small sellers as examples of businesses that don’t need to register but may choose to, and it points to a bulletin called Small Sellers (Bulletin PST 003) for the details, which we haven’t summarized. Your own duty to register depends on what you sell. A freelance designer and a shop selling boats can have the same revenue and very different PST duties. For details on your own activity, the province’s small business guide and contact line are the place to ask.
What does a sale look like with both taxes?
Take a $1,000 sale of a taxable item in BC. You charge $50 GST and $70 PST, and the customer pays $1,120. You’d remit the GST to the CRA and the PST to the province, not as one payment. Test other prices with the GST and PST calculator, or work backwards from a till total with the reverse tax calculator.
| Price before tax | GST 5% | PST 7% | Customer pays |
|---|---|---|---|
| $500 | $25.00 | $35.00 | $560.00 |
| $1,000 | $50.00 | $70.00 | $1,120.00 |
| $2,500 | $125.00 | $175.00 | $2,800.00 |
The calculator applies 12% to every amount. If part of your sale is PST-exempt, such as children-sized clothing, books or restaurant-style food (all on the exempt list), take the PST off those lines yourself.
What happens to the PST you collect?
It’s not yours. Say a month of sales comes to $8,000 of taxable goods. You’d have collected $560 of PST ($8,000 times 7%) and $400 of GST on the same sales, and those two amounts go to two different governments. Park the PST in a separate account if you can, so a slow month doesn’t tempt you to spend it. Remitting late is where small sellers get into trouble, and we couldn’t confirm the penalty amounts, so check the province’s page for your filing frequency.
Are services taxed too?
Some are. The province planned to extend PST to accounting services, including bookkeeping and assurance, from 1 October 2026, but its notice now says the expansion is paused. If you provide those services, read the province’s current notice before you change your invoices. An article is no substitute, this one included.
Mistakes that cost money
Short list. Charging PST on exempt items, charging GST but forgetting PST on a taxable sale, or assuming your small GST status covers PST. Another is treating the tax you collected as your own money. It isn’t. It sits in your account until you remit it.
If you also sell into other provinces, rates change by place. The GST/HST calculator covers HST provinces, and the self-employed tax calculator shows how business income feeds into your own income tax (it leaves out EI, so keep that in mind).
Our sources
The 7% rate, the registration activities and the exemptions come from the BC government’s PST pages. The $30,000 small supplier figure comes from the Canada Revenue Agency. We checked them on 30 September 2026, and we couldn’t confirm penalty amounts or due dates, so we’ve left those out.
Frequently asked questions
What is the PST rate in BC?
The standard rate is 7% of the purchase or lease price, with some exceptions.
Is there a small business threshold for PST?
The BC registration page shows no revenue threshold. Registration depends on what you sell, so check the province's small business guide.
What if I don't register but should have?
You're still treated as a collector and must still collect and remit the tax.
How long does PST registration take?
The BC page says the online form takes about 15 to 25 minutes and processing can take up to 21 business days.
Do I charge PST and GST on the same price?
Yes, on most taxable sales, both on the pre-tax price. They're remitted to different bodies.
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