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Tax Alert 2026 No. 10, 23 February 2026
The Government of British Columbia announced changes in its 2026 budget that would expand the provincial sales tax (PST) base to include certain professional services, effective 1 October 2026, subject to Bill 2, Budget Measures Implementation Act, 2026 receiving Royal Assent.
If enacted as proposed, businesses making supplies of the newly listed professional services will generally be required to register to charge, collect and remit PST at a rate of 7%, with the exception of architectural, engineering and geoscience services, which will be subject to a special taxable-base rule under which PST will apply to only 30% of the purchase price of those services.
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Issue No. 10, 23 February 2026
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Previous issues
Proposed hybrid mismatch arrangement rules
On 29 January 2026, the Department of Finance released two packages of draft legislative proposals for public comment. The proposals implement certain measures announced in the 2025 federal budget, as well as other previously announced measures and new technical amendments, including the much-anticipated second package of hybrid mismatch arrangement rules.
BC Finance Minister Brenda Bailey tabled the province’s fiscal 2026 budget on 17 February 2026.
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Draft legislative proposals released for Budget 2025 and other previously announced measures
On 29 January 2026, the Department of Finance released two packages of draft legislative proposals for public comment. The draft legislative proposals implement certain measures announced in the 2025 federal budget (Budget 2025), as well as other previously announced measures and new technical amendments.
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