Last updated: May 2026
GST and PST in BC (Quick Answer)
In British Columbia, businesses charge:
- 5% GST (federal tax)
- 7% PST (provincial tax)
👉 These taxes are separate, not combined like HST.
What Is GST and PST in BC?
British Columbia does not use HST. Instead, it uses two separate taxes:
- GST (Goods and Services Tax) – 5% federal tax
- PST (Provincial Sales Tax) – 7% provincial tax
👉 This means businesses may need to calculate and display both taxes separately on invoices.
BC Tax Rate Breakdown
| Tax Type | Rate |
|---|---|
| GST (Federal) | 5% |
| PST (British Columbia) | 7% |
| Total (if both apply) | 12% |
When Do You Charge GST and PST in BC?
You may need to charge:
- GST if you are registered for GST/HST
- PST, depending on the type of goods or services you provide
👉 Not all services are subject to PST, so it’s important to verify whether it applies.
👉 Always charge tax based on your customer’s location.
Example: GST + PST Calculation
| Description | Amount |
|---|---|
| Service | $100.00 |
| Subtotal | $100.00 |
| GST (5%) | $5.00 |
| PST (7%) | $7.00 |
| Total | $112.00 |
How to Calculate GST and PST
Use these formulas:
- GST = Subtotal × 0.05
- PST = Subtotal × 0.07
Then:
👉 Total = Subtotal + GST + PST
Do You Always Have to Charge PST?
No — PST depends on what you sell.
In BC:
- Physical goods usually require PST
- Many services do not require PST
👉 Always check whether PST applies to your specific business type.
When Do You Need to Register for GST?
You must register once your business earns:
👉 $30,000 in revenue over 12 months
Before that, you are considered a small supplier.
Common GST/PST Mistakes
- Assuming BC uses HST
- Combining GST and PST incorrectly
- Charging PST on services that don’t require it
- Not showing both taxes clearly on invoices
How to Show GST and PST on an Invoice
Your invoice should display:
- Subtotal
- GST (5%)
- PST (7%)
- Total
👉 Keep them separate — do not combine them into one line.
Tools to Calculate BC Taxes
Use Lunio’s tools to simplify tax calculations:
Related Guides
FAQ
Does BC use HST?
No — BC uses separate GST and PST taxes.
What are the GST and PST rates in BC?
GST is 5%, and PST is 7%, for a total of 12% if both apply.
Do I charge PST on services?
Not always. Many services are exempt from PST in British Columbia.
Final Thoughts
BC’s tax system is slightly more complex than HST provinces because GST and PST are separate.
Once you understand when each applies, invoicing becomes much easier.