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Sales tax in British Columbia

Sales tax in British Columbia is 12%: GST 5% plus PST 7%. What a small business in British Columbia charges, who collects it, and when you have to register.

Total rate
12%
Made up of
GST 5% + PST 7%

British Columbia has two sales taxes on most sales: the federal GST and the provincial PST. Together they come to 12%. They work differently:

  • The GST is filed with the CRA. A registered business claims back the GST it pays on business purchases as input tax credits.
  • The PST is administered by the B.C. Ministry of Finance, with its own registration and returns. PST you pay on what you buy for the business usually can't be claimed back: it's part of the cost.

Registration rules for PST differ from the GST’s. Check them with the B.C. Ministry of Finance.

When you have to register

You must register for the GST/HST once your taxable sales pass $30,000 over four consecutive calendar quarters, or in a single quarter. Until then you’re a small supplier and registering is optional. Registering early lets you claim back the GST/HST on what you buy, but you then have to charge it and file returns. The CRA’s guide for registrants (RC4022) have the details.

Keeping track of it

Every sale you make and most things you buy have tax in them. To file, you need the tax you collected and the tax you paid, period by period. Spark Books does that from your bank statements: it splits the tax out of every transaction and works out your return’s figures, with the due date. Free.

Price before tax
$100.00
GST at 5%
$5.00
PST at 7%
$7.00
Total with tax
$112.00

Rates in effect today. Some goods and services are zero-rated or exempt, and the rate generally depends on where your customer receives what you sell, not where your business is.

Other provinces and territories

Bookkeeping for British Columbia businesses, free

Upload your bank statements and Spark sorts every transaction, with the GST and PST split out. When your return is due, the figures are ready.

Start your books