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Bookkeeping requirements in British Columbia come from three places. The CRA wants records kept for six years, the province wants PST records for five, and a BC company must also keep adequate accounting records under the Business Corporations Act. Keep everything six years and you cover the longest of them.
What does BC add to the federal rules?
Federally, section 230 of the Income Tax Act says a business must keep books that let its tax be determined. The CRA’s retention period is six years from the end of the last tax year the records relate to, and its page on keeping records says so in nearly those words.
British Columbia adds its own tax, the PST, and its own company law. A BC business that sells taxable goods or services collects PST as well as GST, so it needs records for both. Picture a Kelowna bike shop. The owner files GST with the CRA and PST with the province, two returns on two schedules, and the books have to feed both without a scramble.
BC bookkeeping requirements at a glance
| Item | Rule | Body |
|---|---|---|
| Income tax records | At least 6 years from the end of the last tax year | CRA |
| PST records | Keep books, records and supporting documents for 5 years | BC Ministry of Finance |
| PST general rate | 7% on most goods and services | BC Ministry of Finance |
| PST return | Due the last day of the month after the reporting period | BC Ministry of Finance |
| GST registration | Over $30,000 of taxable sales in a single quarter or four quarters | CRA |
| Company accounting records | Adequate records for each financial year, kept for the prescribed period | Business Corporations Act |
Do you have to register for PST?
Not always. A small seller can stay out of PST registration when its gross revenue from retail sales of eligible goods, software and services was $10,000 or less over the previous 12 months and is expected to be $10,000 or less in the next 12. The seller also can’t have established business premises. If you’re above that line, you register and start collecting.
The GST rule is separate and higher. The CRA says a small supplier doesn’t have to register while taxable supplies stay at $30,000 or less over four consecutive quarters. Go over $30,000 in one quarter and you must charge GST from that sale.
So a seller with $25,000 of taxable sales and a storefront can sit under the GST line and still need a PST number, because a storefront counts as established premises and the revenue test is only $10,000. That catches new retailers off guard.
What does tax on a sale look like in BC?
Take a $2,000 sale of taxable goods. The GST and PST calculator shows $100 of GST at 5% and $140 of PST at 7%, so $240 of tax and a $2,240 total. Your books should show the $2,000 as revenue and the $240 as tax you owe, in two accounts for the two taxes. The same tool warns that some items are exempt from one tax and not the other, so check the item before you apply both.
Scale that up. A month with $15,000 of taxable sales means $750 of GST and $1,050 of PST, $1,800 in all, none of it yours, so treat it like a few bucks you’re holding for someone else. If that money is sitting in your everyday account, it’s easy to spend it by mistake.
Because BC has no single blended tax, your invoices should show GST and PST on separate lines. That makes each return a simple total of one column.
What if you run a BC company?
A BC company must keep adequate accounting records for each financial year and keep them for the prescribed period. The directors choose where. It also has to prepare financial statements for the latest completed year, following generally accepted accounting principles. We didn’t find the prescribed period on the pages we read, so six years is a sensible working figure, not a confirmed rule.
On income, the corporate tax calculator shows what a BC corporation with $300,000 of active business income pays for 2026. The result is $33,000, or 11.0%, made up of $27,000 federal and $6,000 provincial. An Ontario company in the same tool pays more, $35,088.
Self-employed people in BC can test their year with the self-employed tax calculator, which leaves out GST, PST and EI.
Can you throw out old records?
Only when the clock has run and, for early disposal, with permission. The CRA asks you to fill in Form T137 and apply in writing, and it says destroying records without its permission can lead to prosecution. The province says much the same for PST records. If a filing cabinet is bursting, scan the paper instead of clearing it out.
Mistakes worth avoiding
The usual one is a single sales tax account. When GST and PST land in one pile, the two returns are hard to reconcile. Another is treating five years as the whole answer. The PST period is five, but income tax needs six.
More tools live in the sales tax hub. For rates and credits across the province, see our British Columbia tax guide, and for how the two sales taxes stack, read British Columbia GST and PST.
Where this information comes from
PST records, rates and the $10,000 limit come from the BC government’s small business PST guide. Company duties come from the Business Corporations Act summaries on BC Laws. Income tax and GST rules come from the CRA. The CRA records page and the BC small business PST guide were re-read on 13 November 2026, and the rest was read in September 2026. Examples use this site’s 2026 calculators. This is an independent site and no government body has reviewed or endorsed what you read here.
Frequently asked questions
How long must I keep business records in BC?
Keep income tax records for six years from the end of the last tax year they relate to, which is the CRA rule. BC asks for five years for PST records. Because the CRA period is longer, keeping everything for six years covers both. Early destruction of tax records needs the CRA's permission, using Form T137 or a written request.
Do I need to register for PST in BC?
Not always. A small seller can stay out when its gross retail revenue from eligible goods, software and services was $10,000 or less in the previous 12 months and is expected to stay at $10,000 or less over the next 12. BC lists further conditions, including no established business premises, so check the small business guide.
When do I register for GST in BC?
You must register once taxable sales pass $30,000 in a single calendar quarter or over four consecutive quarters, and you charge GST from the sale that put you over. Below that line you can still register voluntarily, which lets you claim input tax credits on business purchases. PST has its own, lower revenue test.
Does a BC company have extra record rules?
Yes. A BC company must keep adequate accounting records for each financial year and prepare financial statements under the Business Corporations Act. We did not find the prescribed retention period on the pages we read, so six years is a working figure, not a confirmed rule. Check BC Laws for the current wording.
How do I record GST and PST on one sale?
Show them on separate invoice lines and in separate ledger accounts. On a $2,000 taxable sale, GST at 5% is $100 and PST at 7% is $140, so the customer pays $2,240. Keeping two tax accounts means each return is a simple total of one column instead of a reconciliation.
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST
- 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