British Columbia Sales Tax Calculator

BC PST and GST: how to calculate 12%

To calculate BC sales tax on most goods, take 5% GST and 7% PST of the pre-tax price and add both. A $100.00 purchase carries $5.00 GST and $7.00 PST, $112.00 in total. A $1,500.00 sofa carries $75.00 and $105.00, $1,680.00 in total.

The two taxes are run by different governments. The CRA collects the GST; the BC Ministry of Finance collects the PST under the Provincial Sales Tax Act, with its own registration, returns and exemptions. That is why an item can be GST-taxable but PST-exempt, or the reverse. Always check each tax separately.

Where the PST rate differs, calculate each tax separately. A $40.00 bottle of wine carries $2.00 GST and $4.00 PST at the 10% liquor rate, $46.00 in total. The calculator above uses the general 7% rate.

What BC PST applies to beyond store purchases

BC PST applies to more than goods. According to the BC government’s small business guide, it also applies to:

• software, including software bought online
• related services to taxable goods: car repairs and oil changes, computer and electronics repairs, furniture assembly and re-upholstery, clothing alterations
• telecommunication services: internet, phone and TV, and digital content such as music and movie streaming
• legal services
• short-term accommodation in BC (at its own rate)
• online marketplace services
• passenger vehicle rentals of 8 hours to 28 consecutive days, which also carry a $1.50-a-day passenger vehicle rental tax

Natural gas, heating oil and the ICE Fund tax

Energy bills in BC can show a small extra line. A 0.4% Innovative Clean Energy (ICE) Fund tax applies to natural gas, fuel oil and propane, in addition to the 7% PST where PST applies. It is calculated separately on the price before taxes: on a $100.00 energy charge, the ICE Fund tax is $0.40.

Homes are treated differently from businesses. Residential energy products can be PST-exempt, but the BC government says that exemption does not apply to the ICE Fund tax, so households still pay it. Electricity is not subject to the ICE Fund tax and is PST-exempt.

BC PST exemptions you may not know about

Food, children’s clothing and books are only part of BC’s exemption list. Each item below is free of PST but still carries GST:

• bicycles, adult tricycles and qualifying e-bikes, plus repairs to them
• used clothing and footwear sold for under $100 per item
• vitamins and dietary supplements
• plain and flavoured bottled water, still or carbonated, that contains no sweeteners
• specified school supplies, and specified safety equipment and protective clothing
• heat pumps
• natural cut evergreens sold as Christmas trees
• personal services such as hairstyling, barbering and beauty treatments; dry cleaning and laundry; services to animals such as pet grooming and veterinary care; and towing, roadside tire changes and battery boosts

Worked examples: restaurant bill, bike and car rental

A $60.00 restaurant meal with a $3.00 soda: the meal carries $3.00 GST only, because food is PST-exempt. The soda carries $0.15 GST and $0.21 PST. The bill is $66.36.

A $2,400 e-bike that meets the exemption conditions: PST-exempt, so only $120.00 GST, saving $168.00 compared with a taxable item at the same price.

A 3-day car rental at $70 a day: $14.70 PST on the $210 charge, plus $4.50 passenger vehicle rental tax. The guide notes that PST is not charged on the rental tax but GST is.

Who must register to collect BC PST

You must register to collect PST if you are located in BC and, in the ordinary course of business, sell or lease taxable goods, provide software, or provide related, legal or telecommunication services in BC. Online marketplace facilitators and many out-of-province sellers with BC customers may also have to register.

Small sellers are the exception and do not have to register. One condition is revenue: $10,000 or less in gross revenue from retail sales in the previous 12 months, and an estimate of $10,000 or less for the next 12. BC’s Bulletin PST 003, Small Sellers, sets out the other conditions, including when a home-based business qualifies.

Failing to register does not remove the obligation: the BC government says you are still a collector who must collect and remit PST. Accommodation hosts who sell only through an online marketplace facilitator do not need to register, because the facilitator collects. GST registration is separate and follows the federal $30,000 small supplier rule.

Voluntary PST registration and self-assessment

A business that does not have to register for PST can still register voluntarily. According to the BC government, this lets it self-assess the PST it owes on goods it obtains for business use on its PST return, instead of paying separately. Accommodation hosts and sellers who sell only through an online marketplace facilitator may not need their own registration, because the facilitator handles it.