B.C. has announced that the planned October 1, 2026 expansion of PST to professional services has been paused. 

The Province says the pause will maintain the existing PST exemption for professional services, including bookkeeping, accounting, architectural, engineering, non-residential real estate and security services.

What this means: The October 1 PST expansion discussed in this article is not proceeding as originally scheduled.

We'll update this article as B.C. provides further information about when the expansion may proceed.

Starting October 1, 2026, if you pay someone else to do your books in B.C., you may see an additional 7% PST on your bookkeeping bill.

If that sentence just made your stomach drop, take a breath first: this change affects businesses that purchase bookkeeping or accounting services. If you do your own books, there is no bookkeeping service being purchased, so this particular PST change doesn't apply to the work you do yourself.

What's Actually Happening

B.C. is expanding provincial sales tax to include accounting services, and the definition specifically includes bookkeeping, billing and account reconciliation.

So if you hire a bookkeeper, accounting firm or other service provider to handle your books, the taxable portion of that service is generally subject to 7% PST starting October 1, 2026.

And this isn't limited to big accounting firms or CPAs. B.C.'s rules apply based on the taxable service being provided, not simply on the size of the business or whether the person providing it holds a CPA designation.

The Part Worth Actually Understanding

PST applies to the purchase price of the bookkeeping or accounting service. It isn't a tax on your business revenue, and it isn't a tax on the bookkeeping work you do yourself.

If you sit down at your own computer and reconcile your own books, there is no bookkeeping service being purchased from someone else.

No service being purchased. No PST on your own bookkeeping work. Full stop.

What This Means for Your Budget

If you currently pay a bookkeeper $500 a month for taxable bookkeeping services, 7% PST would add $35, bringing the total to $535, assuming the bookkeeper's underlying price doesn't change and no exemption applies.

There's another important difference to understand: unlike GST/HST, PST generally isn't something a business simply claims back through input tax credits. For many businesses, that makes the 7% a real additional cost of outsourcing the service.

Worth having a quick, low-drama conversation with whoever does your books to confirm how they're handling the change, when they'll begin charging PST, and whether anything about your existing billing arrangement needs to change.

One Timing Detail Worth Knowing

The transition to the new tax isn't quite as simple as "September work = no PST" or "October invoice = PST."

The rules look at when consideration for the service becomes due or is paid, as well as when the services are provided.

Generally, consideration that becomes due or is paid before October 1, 2026 isn't subject to the new PST. However, there is a specific transition rule for amounts paid or due before October 1 that relate to accounting services provided after September 30.

So if your bookkeeping arrangement crosses the October 1 transition date, particularly if an invoice covers work from both before and after the change, it's worth confirming how the PST should be handled rather than making assumptions based on the invoice date alone.

FAQ

Does this affect what I pay if I use accounting software myself? No — this particular change is about taxable accounting services, including bookkeeping services. It isn't a tax on the bookkeeping work you perform yourself. Your accounting software subscription is a separate issue from paying someone to provide bookkeeping services.

My bookkeeper is a side-hustle solo practitioner, not a big firm. Does this still apply? Potentially, yes. The rules aren't limited to large accounting firms or CPAs. B.C.'s definition of accounting services specifically includes bookkeeping, and the tax is based on the taxable service being purchased rather than simply the size or professional designation of the provider.

Should I switch to doing my own books to avoid this? That's a bigger decision than a 7% tax should drive on its own. Weigh it against the actual value of the time and expertise you're paying for, the complexity of your books, and how comfortable you are managing the work yourself. A 7% tax is one line on the bill. It shouldn't automatically determine who does your books.

What if my bookkeeper provides other services along with bookkeeping? The new rules apply specifically to taxable accounting services, and B.C.'s legislation and regulations contain particular rules around what is included, excluded and exempt. If your invoice combines bookkeeping with other services, don't assume the entire invoice is automatically treated the same way.

Does this apply to every bookkeeping service in every situation? Not necessarily. There are specific rules and exemptions, including rules for services relating to jurisdictions other than B.C. The practical takeaway for most B.C. businesses is that taxable bookkeeping and accounting services are entering the PST system on October 1, 2026, but unusual arrangements may need a closer look.

Have questions about how your own books should actually be run, taxed, and filed? That's exactly what RSB was built for.

Follow the system. File with confidence.