What clients need to know about the Province’s new 7% tax
Beginning October 1, 2026, the Province of British Columbia is expanding Provincial Sales Tax (PST) to certain professional services, including accounting services.
As a result, Cahill CPA LLP will be required to charge and collect 7% PST on taxable accounting services where the new rules apply.
Which accounting services will be subject to PST?
The new rules broadly apply to accounting services, including:
- Bookkeeping and the preparation of accounting records
- Financial statement preparation
- Compilation, review and audit engagements
- Corporate and personal tax return preparation
- Tax accounting and advisory services
- Payroll, billing and account reconciliation services
- Cost, financial, forensic and management accounting services
When will PST begin appearing on invoices?
In general, 7% PST will apply when payment for taxable accounting services becomes due on or after October 1, 2026, even if some or all of the work was completed before that date.
Example: Accounting work completed in September but invoiced on or after October 1 will generally be subject to PST.
There are transitional rules for certain services that are paid or become due before October 1, 2026. Our team will apply these rules to each invoice as required.
Is this a fee increase from Cahill CPA LLP?
No. This is not an increase to our professional fees. PST is a provincially imposed tax that Cahill CPA LLP is required to collect from clients and remit to the Government of British Columbia. Where applicable, GST will continue to be charged separately.
Invoice example
| Invoice item | Amount |
| Professional fees | $1,000 |
| GST at 5% | $50 |
| PST at 7% | $70 |
| Total invoice | $1,120 |
Unlike GST, businesses generally cannot claim an input tax credit to recover PST. The PST will therefore usually represent an additional cost to the client.
What do clients need to do?
No immediate action is required. Beginning October 1, 2026, applicable PST will automatically appear as a separate line on invoices from Cahill CPA LLP.
We understand that tax changes can raise questions. Our team is available to help explain how the new rules apply to your account.
More information
For additional information, review the Province of British Columbia’s official guidance: PST on accounting services
This article provides general information only and should not be considered tax or legal advice. The application of PST depends on the particular facts and circumstances.