While the B.C. government announced that it would be pausing its provincial sales tax (PST) expansion plans starting October 1, 2026, some services didn’t escape it entirely.
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B.C.’s PST Expansion Plans
Originally, B.C. was going to expand the number of services PST would apply to, beginning on October 1. It would have included:
- Accounting services, including bookkeeping and assurance services
- Architectural services
- Engineering and geoscience services
- Security services, including private investigation services
- Non-residential real estate services, including trading services, rental property management services and strata management services
But in September, B.C. Premier David Eby announced that the province was going to pause the tax expansion amid the trade war between Canada and the U.S.
“There’s a time to stay the course and there’s a time to adjust. This is a time to adjust,” said Eby. “Delaying these changes until well after Trump’s disastrous trade war is over will give businesses some breathing room as they navigate tariffs and bans while pivoting to other markets.”
Newly-Taxed Services
Not all of these services escaped the tax expansion, though.
Tailoring services are now subject to the 7% PST as of October 1. This includes mending and making clothes, as well as the material needed for clothing, such as yarn, thread, fabric, and patterns.
While these services and materials were once deemed essential, B.C.’s 2026 budget notes that they aren’t commonly used anymore. Notably, textiles were not mentioned in Eby’s initial announcement about the PST expansion pause, and they are now included as taxable on the province’s website.
