BC PST extended to accounting, architectural, engineering, non-residential real estate and security services — with new exemptions

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British Columbia's Provincial Sales Tax will now apply to five additional service categories: accounting, architectural, engineering, non-residential real estate (commercial), and security services. Providers of these services will need to collect and remit PST on taxable transactions. Key exemptions carve out services that relate to jurisdictions outside BC, services purchased for resale, services provided by an employee of a related corporation, and certain specific service types (e.g., pre-design and post-construction architectural work, advisory and construction-management engineering work, and alarm-installation security services). Clients that are First Nation individuals, bands, or aboriginal organizations acting on treaty or land-claims matters are also exempt. The taxable purchase price excludes pass-through disbursements for travel, food, accommodation, and document transmission costs where those amounts are reasonably related to actual costs. Businesses in affected sectors should review their billing and PST collection systems before the rules take effect.

Who this affects
accounting firms and professionals · architects and architectural firms · engineering firms · commercial real estate brokers and agents · security service providers · businesses purchasing these professional services in BC · First Nation individuals and bands purchasing these services