Do I Charge PST When Selling to British Columbia?
The answer depends on what you’re selling — and BC has some surprises.
The short answer
Yes — if you're selling taxable goods or certain services to BC
If you sell physical goods, software (including SaaS), or certain specific services to customers in British Columbia, you are required to collect BC PST at 7% — on top of the federal 5% GST. This applies whether you are based in BC or anywhere else in Canada (or the world), as long as you are “soliciting” sales to BC consumers.
However, not everything is taxable under BC PST. Pure consulting and professional services, for example, are generally exempt — even though BC taxes more service categories than any other PST province. Whether you owe PST comes down to exactly what you’re selling.
Unlike GST/HST, there is no minimum revenue threshold for BC PST registration if you are actively soliciting BC customers. Once you make a single taxable sale to a BC buyer, you may be required to register.
How it works
BC PST: what's taxable, what's not
BC left the HST in 2013 and returned to a standalone PST. The rate is 7%, administered by the BC Ministry of Finance — completely separate from the CRA. That means two registrations (CRA for GST/HST, BC Ministry of Finance for PST), two remittances, and two sets of rules.
BC’s PST is broader than most people expect. Most provinces only tax tangible goods. BC also taxes software (including cloud software and SaaS), telecom services, legal services, and online marketplace services. The full list is set out in PST Bulletin 105 for software and the BC PST registration bulletin (PST 001) for general scope.
What you’re selling — and whether BC PST applies
| What you sell | BC PST | GST/HST | Notes |
|---|---|---|---|
| Physical goods (furniture, clothing, electronics) | 7% | 5% GST | PST applies when goods are delivered to a BC address. |
| SaaS / cloud software subscription | 7% | 5% GST | BC Bulletin PST 105 explicitly includes SaaS and IaaS as taxable software. |
| Downloadable software (licence) | 7% | 5% GST | Software in any form — including APIs and website access with functionality — is taxable. |
| Freelance consulting / professional services | Exempt | 5% GST | Pure service engagements with no hardware or software component are not subject to BC PST. |
| Legal services | 7% | 5% GST | Legal services are explicitly listed as taxable in BC — one of the few service categories that is. |
| Software consulting (configuring, testing, installing software) | Exempt | 5% GST | Services TO software are exempt per PST 105. Installing, configuring, modifying, repairing, or testing software is not taxable. |
| Telecommunication services | 7% | 5% GST | Telecom is explicitly taxable under BC PST. |
| Basic groceries | Exempt | 0% (zero-rated) | Exempt from BC PST and zero-rated for GST/HST. |
Example — physical goods: You sell a $200 piece of equipment from Ontario to a BC business. The invoice should show $10.00 GST (5%) and $14.00 BC PST (7%) as separate line items. Total: $224.00. If you only charge GST, you’ve missed the PST obligation.
Example — SaaS subscription: You sell a $99/month software subscription to a BC company. Under BC Bulletin PST 105, SaaS is treated as taxable software. The invoice should include $4.95 GST and $6.93 BC PST. Total: $110.88/month.
Example — consulting: You invoice a BC client $5,000 for a strategy consulting engagement. No deliverable software or goods are included. BC PST does not apply — charge only $250.00 GST (5%). Total: $5,250.00.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, buyer province, and product type — with government sources cited.
Use the free calculatorWho needs to register for BC PST?
You are located in BC and sell or lease taxable goods, provide legal services, sell accommodation, or provide software or telecom services in BC.
You are located OUTSIDE BC but "solicit" sales to BC consumers — including through a website, advertising, or by sending catalogs.
You store goods in BC (even temporarily) on behalf of a BC customer.
No minimum revenue threshold applies for non-resident vendors who are actively soliciting. From your first taxable sale to a BC buyer, registration may be required.
Source: BC PST Bulletin 001 — Registering to Collect PST (revised August 2023)
What most people get wrong
Common BC PST mistakes
Thinking GST registration covers you for BC PST
It does not. GST/HST is administered by the CRA. BC PST is administered by the BC Ministry of Finance as a completely separate tax. You need to register with both. Many businesses that are properly registered for GST have never registered for BC PST and are unknowingly out of compliance on every taxable sale they make to BC buyers.
Assuming services are always exempt
In most provinces, PST only applies to goods. BC is different. Legal services, telecom, SaaS, IaaS, APIs, and online marketplace services are all taxable under BC PST. If you provide any of these, "it's a service, so no PST" is the wrong answer for BC customers.
Confusing "software services" with "services to software"
BC draws a sharp line: selling software (including SaaS) is taxable. But providing services TO software — installing it, configuring it, testing it, modifying it — is exempt. A developer who sells a SaaS licence and a developer who charges an hourly rate to configure someone else's software have very different PST obligations for BC clients.
Assuming you're too small to need to register
BC PST has no minimum revenue threshold for out-of-province sellers who solicit BC customers. This is different from GST/HST, which has a $30,000 small supplier threshold. If you have a public website that BC residents can order from, the BC Ministry of Finance considers you to be soliciting BC consumers, regardless of how little you've sold there.
Charging BC PST on exempt items to be "safe"
Overcharging PST is not a safe error — you have collected tax you weren't entitled to collect and remitting it doesn't necessarily make it right. BC buyers can request a refund from you, or claim it from the province if you won't. Pure consulting, most professional services (other than legal), and basic groceries are common examples of things that don't attract BC PST.
Summary
Key takeaways
BC PST is 7%, separate from GST/HST, and administered by the BC Ministry of Finance — not the CRA.
Physical goods delivered to a BC address are taxable at 7% PST + 5% GST.
Software — including SaaS, IaaS, APIs, and cloud subscriptions — is taxable under BC PST (Bulletin PST 105).
Legal services and telecom services are taxable. Most other pure services (consulting, design, development) are not.
Services TO software (installing, configuring, testing) are explicitly exempt — different from selling software.
There is no minimum revenue threshold for out-of-province sellers soliciting BC customers. Registration may be required from your first sale.
You need a separate BC PST registration in addition to your CRA GST/HST number.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, buyer province, and product type — with government sources cited.
Use the free calculatorGovernment sources
Sources
Every claim in this article is based on the official government publications below. Rates and rules change — always verify against the source before making business decisions.
- Provincial Sales Tax (BC PST) — main page
BC Ministry of Finance
- PST Bulletin 001 — Registering to Collect PST (PDF, August 2023)
BC Ministry of Finance
- PST Bulletin 105 — Software (SaaS, IaaS, APIs)
BC Ministry of Finance
- GST/HST — which rate to charge
Canada Revenue Agency
- Place of supply — practical guide
Canada Revenue Agency
Keep reading
Related guides
BC PST on Services: What's Taxable and What's Not
BC taxes more services than any other PST province — but not all of them. SaaS is in; consulting is out. Here's the full breakdown.
Registering for Provincial PST: BC, SK, MB, and QC
Each PST province has its own registration process and threshold. A step-by-step guide for out-of-province sellers.
Place of Supply Rules in Canada: The Complete Guide
How the CRA (and provincial tax authorities) determine which province's tax rate applies to every transaction type.
Disclaimer
TaxMapCA provides tax information, not tax advice. This article is for general informational purposes only and does not constitute legal or accounting advice. Tax rules change — always verify rates and rules against the government sources linked above before making business decisions. TaxMapCA is not affiliated with or endorsed by the Canada Revenue Agency, the BC Ministry of Finance, or any other tax authority. For complex situations, consult a qualified CPA or tax professional.