PST Changes for Engineering and Geoscience Services Take Effect October 1
Starting October 1, 2026, certain professional engineering and geoscience services provided in BC will be subject to provincial sales tax (PST). The change was introduced as part of the BC government’s 2026 budget.
PST will apply to 30 percent of the price of engineering and geoscience services at the standard rate of seven percent.
Firms that provide taxable services must register to collect and remit PST unless an exemption applies. Individual engineers and geoscientists do not need to register unless they sell services directly (e.g., sole practitioners).
Exempt Services
The BC government has identified several categories of engineering and geoscience services that are exempt from PST, including:
- advisory and concept design services
- construction-related services
- resident engineering services
- project management services
- construction management services
The application of an exemption will depend on the nature of the services provided. Firms should review the provincial guidance carefully and seek appropriate tax advice where needed.
The provincial guidance also addresses services provided outside British Columbia, services related to projects in more than one jurisdiction, bundled sales, resale exemptions, and transitional rules for work performed around the October 1 implementation date.
Work Underway to Seek Clarification
Engineers and Geoscientists BC recognizes that registrants and firms have questions about how the new requirements will apply in practice, including questions about the scope of taxable services, interpretation, and implementation. We have informed the Ministry of Finance of the areas of concern that have been brought to our attention by registrants.
BCSEG (the advocacy body for engineering and geoscience professionals) is also offering an information session with Ministry representatives on the application of PST on September 16.
Where to Learn More
As a provincial regulatory body, Engineers and Geoscientists BC can help communicate relevant information published from government to the professions, but cannot interpret legislation or provide individual tax or legal advice. Firms and practitioners should direct questions about their specific circumstances to the Ministry of Finance at 250-410-0373 or [email protected], or a qualified tax adviser.
Firms that may provide taxable services should:
- Review the BC government’s guidance on PST for engineering and geoscience services.
- Determine whether they need to register to collect and remit PST.
- Review the exemptions and transitional rules that may apply to their services and contracts.
- Seek tax or legal advice if they are uncertain how the requirements apply to a particular situation.
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