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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.
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, all 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?
The CRA says six years from the end of the last tax year. BC says five years for PST records. Keep everything six years.
Do I need to register for PST in BC?
A small seller with $10,000 or less of eligible retail sales in the previous and next 12 months, and no established premises, can stay out.
When do I register for GST in BC?
Once taxable sales pass $30,000 in a single quarter or over four consecutive quarters.
What is the PST rate in BC?
7% on most goods and services. Some items have other rates, such as liquor at 10%.
Does a BC company have extra record rules?
Yes. The Business Corporations Act requires adequate accounting records and financial statements each year.
- 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