{"id":56073,"date":"2026-09-23T09:42:15","date_gmt":"2026-09-23T13:42:15","guid":{"rendered":"https:\/\/www.millerthomson.com\/?p=56073"},"modified":"2026-09-23T09:42:17","modified_gmt":"2026-09-23T13:42:17","slug":"british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/corporate-tax\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\/","title":{"rendered":"British Columbia pauses expansion of PST to professional services: What businesses need to know"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Introduction<\/h2>\n\n\n\n<p>With less than two weeks before the October 1, 2026 effective date, British Columbia has paused the planned expansion of Provincial Sales Tax (\u201cPST\u201d) to professional services, a measure many businesses and their advisors had already spent months preparing for. The Province cited ongoing international trade uncertainty and economic pressures as the reason for the delay. However, a snap election was called days later and British Columbians head to the polls on October 24th. No new timeline has been announced.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What was the scope of the proposed expansion?<\/h2>\n\n\n\n<p>In Budget 2026, British Columbia proposed extending PST to a range of professional services that have historically been non-taxable. Many services provided by, for example, accountants, bookkeepers, architects, engineers, geoscientists, security and private investigation firms, and those involved in non-residential real estate would have been subject to 7% PST. Unlike the federal GST\/HST, PST is not recoverable and the tax represents a \u201creal\u201d cost.<\/p>\n\n\n\n<p>For more details, see our previous report in <a href=\"https:\/\/www.millerthomson.com\/en\/insights\/corporate-tax\/british-columbia-expands-provincial-sales-tax-to-more-professional-services\/\">British Columbia expands provincial sales tax to more professional services<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What does this mean for businesses?<\/h2>\n\n\n\n<p>This is welcome news for professional service providers that would have been affected by the proposed changes, and the individuals and businesses that rely on their services. However, with less than two weeks before the effective date, many businesses and advisors have spent countless hours addressing the new rules. This is the latest of a string of tax changes that have been delayed, scrapped, or were short-lived.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What should businesses do now?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Revert, but retain the groundwork<\/h3>\n\n\n\n<p>Businesses that implemented changes to invoicing systems, billing procedures or client communications in anticipation of the PST expansion should revert to their prior practices where appropriate. However, they should retain records of the planned and implemented changes, as those updates may need to be reintroduced if the expansion proceeds in the future, potentially on short notice.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Address filing obligations<\/h3>\n\n\n\n<p>Businesses that collected PST on professional services will need to report and remit that amount, unless it was refunded to their client. This should be done prior to taking steps to cancel a PST registration.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Close PST account<\/h3>\n\n\n\n<p>Businesses that registered for PST in anticipation of making taxable sales may wish to cancel their PST registration if they are otherwise not required to collect PST, thereby avoiding ongoing nil return filing obligations.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Update client communications<\/h3>\n\n\n\n<p>Businesses that have notified clients about upcoming PST charges should communicate that the measure has been paused and that PST will not apply to their services at this time, while noting that the expansion has not been permanently withdrawn.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s next?<\/h2>\n\n\n\n<p>The Province has not announced a revised effective date. In addition, it remains unclear how much advance notice businesses will receive between the announcement of a new effective date and when those professional services will become taxable.<\/p>\n\n\n\n<p>Miller Thomson\u2019s <a href=\"https:\/\/www.millerthomson.com\/en\/expertise\/tax\/sales-commodity-indirect-tax\/\">Sales, Commodity and Indirect Tax lawyers<\/a> are monitoring for further announcements by the Province.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction With less than two weeks before the October 1, 2026 effective date, British Columbia has paused the planned expansion of Provincial Sales Tax (\u201cPST\u201d) to professional services, a measure many businesses and their advisors had already spent months preparing for. The Province cited ongoing international trade uncertainty and economic pressures as the reason for [&hellip;]<\/p>\n","protected":false},"author":122,"featured_media":25764,"parent":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[551],"insight-format":[416],"class_list":["post-56073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-tax"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>British Columbia pauses expansion of PST to professional services: What businesses need to know | Miller Thomson<\/title>\n<meta name=\"description\" content=\"Canada&#039;s Productivity Mega Deduction: permanent 100% first-year expensing for most capital assets could cut the METR from 13.0% to 6.4%. 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Key rules explained.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.millerthomson.com\/en\/insights\/corporate-tax\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"Miller Thomson\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MillerThomsonLaw\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-09-23T13:42:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-23T13:42:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.millerthomson.com\/wp-content\/uploads\/2025\/01\/insights_tax_calculator.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1098\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sebastian Vives\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@millerthomson\" \/>\n<meta name=\"twitter:site\" content=\"@millerthomson\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sebastian Vives\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/\"},\"author\":{\"name\":\"Sebastian Vives\",\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/#\\\/schema\\\/person\\\/be05481ca4ee617c24b33993ade4c881\"},\"headline\":\"British Columbia pauses expansion of PST to professional services: What businesses need to know\",\"datePublished\":\"2026-09-23T13:42:15+00:00\",\"dateModified\":\"2026-09-23T13:42:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/\"},\"wordCount\":496,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.millerthomson.com\\\/wp-content\\\/uploads\\\/2025\\\/01\\\/insights_tax_calculator.jpg\",\"articleSection\":[\"Corporate Tax\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/#respond\"]}]},{\"@type\":[\"WebPage\",\"ItemPage\"],\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/\",\"url\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/\",\"name\":\"British Columbia pauses expansion of PST to professional services: What businesses need to know | Miller Thomson\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.millerthomson.com\\\/en\\\/insights\\\/corporate-tax\\\/british-columbia-pauses-expansion-of-pst-to-professional-services-what-businesses-need-to-know\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.millerthomson.com\\\/wp-content\\\/uploads\\\/2025\\\/01\\\/insights_tax_calculator.jpg\",\"datePublished\":\"2026-09-23T13:42:15+00:00\",\"dateModified\":\"2026-09-23T13:42:17+00:00\",\"description\":\"Canada's Productivity Mega Deduction: permanent 100% first-year expensing for most capital assets could cut the METR from 13.0% to 6.4%. 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