What is the difference between GST and PST in BC?

GST is a 5% federal tax administered by the CRA on most goods and services across Canada, with input tax credits that offset the GST paid on business purchases. BC PST is a 7% provincial tax administered by the BC Ministry of Finance on most goods and a narrower list of services sold in BC, with no input tax credit — PST paid on business inputs is a real cost.

When do I need to register for PST in BC?

A BC business must register for PST when it sells taxable goods or taxable services to customers in British Columbia. There is no revenue threshold — selling a taxable good triggers the registration requirement. Out-of-province sellers cross a $10,000 annual BC sales threshold under the expanded rules introduced in 2020.

How do I register for GST?

Register through CRA My Business Account, by calling the CRA Business Enquiries line, or through your accountant or bookkeeper. The registration is immediate in most cases, and the CRA assigns a GST/HST number tied to your business number. Begin charging GST from the effective registration date.

How do I register for BC PST?

Register through eTaxBC, the BC government's online portal. The ministry assigns a PST number and confirms your filing frequency based on expected collections. Begin charging PST on taxable sales from the effective registration date.

What is an input tax credit (ITC)?

An input tax credit is the GST/HST you paid on legitimate business purchases, which you can claim back against the GST/HST you collected from customers. If ITCs exceed collections in a period, the CRA refunds the difference. PST has no equivalent — it is a straight cost.

How often do I file GST?

The CRA sets your filing frequency at registration based on annual taxable supplies. Annual filing is available below $1.5M CAD in annual taxable supplies; quarterly is the default for most small businesses; monthly is required above $6M.

How often do I file BC PST?

The BC Ministry of Finance assigns filing frequency at registration — monthly, quarterly, or semi-annually — based on expected PST collected. Returns are due by the last day of the month following the reporting period.

What is the deadline to file and remit GST?

For monthly and quarterly filers, the return and remittance are due one month after the end of the reporting period. For annual filers, the return is due three months after fiscal year-end, with instalments due quarterly. Late filings attract penalties and interest.

What happens if I file GST late in Canada?

The CRA charges a late-filing penalty equal to 1% of the amount owing, plus 25% of that 1% for each full month the return is overdue, to a maximum of 12 months. Interest compounds on the balance daily. Repeat late filers face a higher "failure to file" penalty on subsequent periods.

What happens if I file PST late in BC?

The BC Ministry of Finance charges interest from the day after the due date, and can add a penalty of 10% of the unpaid tax for repeat late filings. Persistent non-filing can lead to a ministry assessment and, ultimately, cancellation of the PST number.

Do I need to charge GST on sales to other provinces?

For goods, you charge GST on sales into GST-only provinces (BC, AB, SK, MB, QC, YT, NT, NU) and HST on sales into HST provinces (ON, NB, NL, NS, PE) at the combined rate. For services and digital products, the place of supply rules determine which tax applies; generally, where the customer is located governs the rate.

Do I need to charge PST on sales to customers outside BC?

No. BC PST applies only to taxable goods and services sold into BC. Sales to customers in other provinces are outside the BC PST regime, though other provincial sales tax may apply depending on the destination province and your nexus there.

GST and PST Filing in BC — A Practical Guide

GST and PST filing in British Columbia is the recurring work of calculating, collecting, remitting, and reporting two separate sales taxes — the federal Goods and Services Tax administered by the Canada Revenue Agency, and the BC Provincial Sales Tax administered by the BC Ministry of Finance. Separate systems, separate rules, separate portals, separate deadlines. A BC business selling taxable goods or services typically files both.

This is the practical working guide. What the taxes are, when you register, how filing actually works, what late filings cost, and the mistakes that catch Canadian owners out.

What is GST? What is PST? How are they different?

GST (Goods and Services Tax) is a 5% federal value-added tax. It applies to most goods and services sold in Canada, with a specific list of exemptions (basic groceries, most residential rent, most financial services, most health and dental services). GST is administered by the CRA through CRA My Business Account, and it works on the value-added principle — businesses charge GST on sales, claim input tax credits on business purchases, and remit the net difference.

BC PST (Provincial Sales Tax) is a 7% provincial tax, separate from GST. It applies to most taxable goods sold in British Columbia, certain software and telecommunication services, and a specific list of taxable services (legal services, accommodation, short-term vehicle rentals, and a few others). It is administered by the BC Ministry of Finance through eTaxBC. PST is not a value-added tax — there are no input tax credits. The 7% a business pays on a taxable purchase is a real cost to the business, not a recoverable offset.

The surface-level similarity misleads owners into treating the two as variants of the same tax. They are not. The mechanics diverge at the input-credit level, which has real implications for pricing, margin, and filing.

For the short definition, see what is GST and PST filing in BC.

Do I need to register for GST? For PST?

Two separate registration questions, answered separately.

GST registration

A Canadian business must register for GST/HST once its worldwide taxable revenue exceeds $30,000 CAD in any single calendar quarter, or in four consecutive calendar quarters. Below that threshold, the business is a "small supplier" and registration is voluntary.

Many businesses choose to register voluntarily below the threshold. The reason: voluntary registration lets the business claim input tax credits on GST paid to suppliers. For a business with significant input costs (equipment, software, supplies, contractors), the ITC benefit can outweigh the administrative burden of filing returns — even at modest revenue levels.

Registration takes effect from the date specified in the application, or from the first dollar of taxable revenue above the threshold for mandatory registrations. Once registered, the business charges GST on every taxable sale regardless of whether the individual invoice is large or small.

PST registration

A BC business must register for PST when it sells taxable goods or taxable services to customers in British Columbia. There is no revenue threshold — a single taxable sale triggers the registration requirement.

What counts as a taxable good is broad: clothing, electronics, furniture, vehicles, building materials, and most physical goods. Taxable services include legal services, telecom, short-term accommodation, short-term vehicle rentals, dry cleaning, and a specific list detailed in the PST legislation.

Out-of-province sellers with at least $10,000 CAD in annual BC sales must also register, under the expanded registration rules introduced in 2020. This captures e-commerce sellers shipping into BC from other provinces or countries.

Register via eTaxBC. The ministry assigns a PST number at registration and sets the filing frequency based on expected PST collected.

Both at once

Most BC businesses that sell taxable goods will register for both GST and PST simultaneously, sometimes at the same time they register the corporation. The two registrations are independent and go to different authorities, but the administrative effort is low if handled together.

How to register — step by step

GST/HST: Sign in to CRA My Business Account. Navigate to "Add an account" and select GST/HST. Complete the registration form with business number, fiscal year-end, expected annual taxable revenue, and preferred filing frequency. The CRA issues the GST/HST number and confirms the first reporting period by mail and in the online account.

BC PST: Sign in to eTaxBC (or create an account). Select "Register for a tax" and choose PST. Complete the registration form, including business details, NAICS code, expected PST collected, and preferred filing frequency. The ministry issues a PST number and confirms the first reporting period.

Both registrations can be completed by a bookkeeper or accountant acting as authorised representative. For engagements we handle, both registrations are part of onboarding when the client has not yet registered.

What is input tax credit (ITC) and how to claim it

Input tax credits are the GST/HST a business paid on its own taxable business purchases, recoverable against the GST/HST it collected from customers. ITCs are the mechanism that makes GST a value-added tax rather than a cumulative one.

The rules in brief:

The purchase must be for use in commercial activities (generating taxable revenue).
You must have the invoice or receipt, and it must meet the CRA's documentation requirements (supplier's GST/HST number, tax amount shown separately, date, description).
Personal-use portions are excluded. If a vehicle is used 70% for business and 30% personally, only 70% of the GST on the purchase, lease, and fuel is claimable.
Meals and entertainment ITCs are limited to 50% of the GST paid, mirroring the 50% income-tax deductibility.
Certain categories are specifically excluded (club memberships, some personal-use items).

On the GST return, ITCs are reported on line 108. The net amount owing (line 115) or refundable (line 114) is the difference between GST collected (line 105) and ITCs claimed.

A common bookkeeping error: claiming ITCs on expenses that include GST in the invoice but where the vendor is not GST-registered (check the vendor's GST number; if there is none, there is no ITC). Another: claiming 100% ITC on meals, which are limited to 50%. A clean bookkeeping process verifies both before filing.

PST has no equivalent. The 7% PST paid on a business purchase is expensed gross, full stop.

Filing frequencies — monthly, quarterly, annual

Both authorities assign a filing frequency at registration, tied to the size of the business.

GST filing frequencies

Annual: available if total annual taxable supplies are below $1.5M CAD. Return due three months after fiscal year-end. Quarterly instalments due for most annual filers to smooth out the remittance.
Quarterly: the default for most small businesses between $1.5M and $6M in annual taxable supplies, and optional below $1.5M. Return and remittance due one month after the end of the quarter.
Monthly: required above $6M in annual taxable supplies, optional below. Return and remittance due one month after the end of the month.

A business can elect to file more often than required (small businesses often file quarterly to smooth cash flow) but cannot file less often than the threshold for its revenue band.

PST filing frequencies

Semi-annually: generally under $1,200 in PST collected per month.
Quarterly: generally between $1,200 and $6,000 in PST collected per month.
Monthly: generally over $6,000 in PST collected per month.

Thresholds are discretionary — the BC Ministry of Finance assigns frequency based on expected PST collected at registration and may adjust it over time. All PST returns are due by the last day of the month following the reporting period.

Key deadlines for 2026

For most BC small businesses with quarterly GST and quarterly PST filings, the 2026 deadlines are:

Period	GST due (quarterly filer)	PST due (quarterly filer)
Jan–Mar 2026	30 Apr 2026	30 Apr 2026
Apr–Jun 2026	31 Jul 2026	31 Jul 2026
Jul–Sep 2026	2 Nov 2026 (31 Oct falls on Saturday)	2 Nov 2026
Oct–Dec 2026	2 Feb 2027 (31 Jan falls on Sunday)	1 Feb 2027

For monthly filers, returns are due by the last day of the following month. For annual GST filers with a December 31 year-end, the return is due 31 March 2027 (three months after year-end).

Source deductions (payroll CPP/EI/tax) are due to the CRA by the 15th of the month following the pay period for regular remitters — these are separate from GST and run on their own schedule.

Common mistakes and how to avoid them

The same handful of errors show up across most unclean GST/PST files.

Mixing GST and PST on the invoice. Both taxes appear on BC invoices, usually as two separate lines. Mis-applying one or the other to an exempt good or service is common. A line-by-line review at invoicing time is the fix; some software (Xero, QBO) automates it correctly if the tax codes are set up properly.

Claiming ITC on non-GST-registrant vendor invoices. Not every supplier charges GST. A contractor below the $30K threshold may not be registered; a rural vendor may not be. If the invoice does not show a GST/HST number, there is no ITC to claim.

Claiming 100% ITC on meals and entertainment. The 50% rule applies to GST on meals just as it applies to the income-tax deduction. A clean chart of accounts splits meals and entertainment from other expenses so the 50% adjustment is visible.

Personal-use claims. Vehicle expenses, home office, and sometimes phone bills carry a business-use percentage. Only the business portion of the GST is claimable as ITC.

Filing out of sequence. Skipping a period and filing the next one first causes reconciliation problems with the CRA's running balance. File in order, always.

PST on taxable services missed. BC PST on legal fees, telecom, and short-term accommodation is easy to overlook because it doesn't apply to the broader category (most services). If you sell any taxable service into BC, register and charge.

Treating PST refunds as available. PST has no ITC. A bookkeeping entry that puts PST into a recoverable account will need a correcting entry at year-end. Book PST paid as expense.

What happens if you file late

Both authorities charge for late filing, in slightly different ways.

CRA — GST

Late-filing penalty: 1% of the amount owing, plus 25% of that 1% per complete month the return is overdue, to a maximum of 12 months. For a $10,000 GST balance filed six months late, the penalty is $100 + (0.25 × $100 × 6) = $250 in penalty alone.
Interest: charged daily on the unpaid balance from the day after the due date, at the CRA's prescribed rate (adjusted quarterly).
Failure-to-file penalty: for repeat offenders, a higher penalty on subsequent periods.
Voluntary Disclosures Program: if a back-filing is more than 12 months late, or if the CRA has started contact about the missed periods, a formal Voluntary Disclosure through a tax CPA may be appropriate. It reduces or waives penalties in exchange for full disclosure, but only if the CRA has not yet acted.

BC Ministry of Finance — PST

Interest: charged from the day after the due date at the ministry's prescribed rate.
Penalty: 10% of the unpaid tax for repeat late filers.
Ministry assessment: persistent non-filing can lead to the ministry issuing an assessment based on estimated collections, which is usually higher than the actual amount owed.
Cancellation: in extreme cases, the ministry can cancel the PST number, which is difficult to reinstate.

The practical answer: if you are behind on GST or PST filings, get current before the authorities contact you. Catch-up bookkeeping typically brings both current within four to eight weeks, and most late-filing situations resolve without penalty escalation if addressed proactively.

GST and PST and e-commerce in BC

E-commerce adds complexity on both sides.

GST on e-commerce. Under the federal place-of-supply rules, GST/HST on online sales of goods and services depends on where the customer is located, not where the seller is. For digital products and most services, the customer's province determines the rate. Shopify, Stripe, and most modern e-commerce platforms handle this automatically if the tax settings are configured correctly; a manual review before launch is essential.

PST on e-commerce. Under the 2020 expanded registration rules, out-of-province sellers with at least $10,000 CAD in annual taxable sales into BC must register for and charge BC PST. This applies to businesses in other provinces shipping into BC, to US-based sellers, and to digital-product sellers. Shopify handles BC PST collection if configured; Stripe Tax handles it as well.

Marketplace facilitators. Large platforms (Amazon, Shopify Markets) may collect and remit PST and GST on behalf of sellers under specific rules. Check whether your platform is acting as a marketplace facilitator for your sales into BC — if it is, the platform is the one remitting, not you, though you remain responsible for documentation.

A common e-commerce bookkeeping pattern we see: a BC seller with Shopify configured for BC PST but not for GST outside BC. Sales to Ontario customers get taxed at 12% (5% GST + 7% BC PST) instead of 13% HST. The Ontario tax authority eventually catches up. Verify the configuration against the place-of-supply rules, or have a bookkeeper do it at onboarding.

GST and PST filing in British Columbia: a practical guide