GST/HST/PST Filing for BC Incorporated Businesses: The Practical Guide
If you run an incorporated business in British Columbia, sales tax is not optional.
BC uses a two-tax system: 5% federal GST plus 7% provincial PST. They are collected together, but remitted separately to different agencies, under different rules, with different deadlines. Get either wrong, and the Canada Revenue Agency or the BC Ministry of Finance will notice.
This guide covers what incorporated BC business owners actually need to know. No accounting degree required.
Do You Need to Register for GST/HST?
You must register for a GST/HST account if your total taxable revenues exceed $30,000 over four consecutive calendar quarters, or in a single quarter. This is the “small supplier threshold.”
Even if you are below the threshold, you may want to register voluntarily. This allows you to claim Input Tax Credits on business expenses, which can reduce your net tax remittance.
GST vs. HST vs. PST
- GST (Goods and Services Tax): 5% federal tax. Applies in BC, Alberta, Saskatchewan, Manitoba, and the territories.
- HST (Harmonized Sales Tax): Combined federal and provincial tax at 13% to 15%. Applies in Ontario, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador.
- PST (Provincial Sales Tax): Separate provincial tax. In BC, the rate is 7% on most goods and services.
In British Columbia, you charge 5% GST + 7% PST on most taxable sales.
If your business sells to other provinces, the rules multiply. A customer in Ontario pays HST. A customer in Alberta pays GST only. Tracking this manually is where most businesses start making mistakes.
Filing Frequencies
The CRA assigns your GST/HST filing frequency based on your annual revenue:
| Annual Revenue | Filing Frequency |
|---|---|
| $1.5M or less | Annual |
| $1.5M to $6M | Quarterly |
| Over $6M | Monthly |
You can request more frequent filing if it benefits your cash flow. For example, if you regularly receive refunds because your input tax credits exceed the tax you collect, filing more often gets you your money back sooner.
Common Mistakes to Avoid
1. Not Charging Tax When You Should
Some business owners forget to add GST or PST to invoices. If you are registered, you must charge it. Even if you forget to list it separately, the CRA considers it included in the price. You still owe it.
2. Missing Filing Deadlines
Late filings result in penalties and interest. Mark your calendar:
- Annual filers: 3 months after your fiscal year-end
- Quarterly/Monthly filers: 1 month after the reporting period
3. Not Claiming All Eligible Input Tax Credits
You can claim GST/HST back on legitimate business expenses. Office supplies, software subscriptions, professional services, vehicle expenses, and more. The catch: you need clean records and valid receipts. Without them, the CRA can deny your claims.
4. Mixing Up PST and GST
In BC, PST is collected and remitted to the provincial government separately from GST. They have different rules about what is taxable and what is exempt. Do not combine them into a single “tax” line on your books. Your remittance calculations will be wrong, and both agencies will have questions.
5. Spending the Tax Money
The GST and PST you collect from customers was never your money. You are holding it for the government. A bookkeeper sets the remittance amounts aside so you do not accidentally spend what you will need to send to the CRA next quarter.
How a Bookkeeper Helps
A professional bookkeeper does more than enter transactions. For a BC incorporated business, a bookkeeper:
- Tracks taxable, zero-rated, and exempt sales correctly
- Separates GST from PST in your books
- Files GST/HST with the CRA and PST with the BC Ministry of Finance
- Maximizes your Input Tax Credits without overstating them
- Keeps you audit-ready with clean records and valid receipts
- Sets aside remittance money so you are never short at deadline
The October 2026 PST Change
Effective October 1, 2026, BC will apply 7% PST to accounting and bookkeeping services for the first time. Because BC PST is non-refundable, this is a permanent added cost on every BC business that hires a bookkeeper. An efficient, low-rework bookkeeper who gets it right the first time becomes more valuable, because you cannot claim this PST back.
Need Help With Your Filings?
If you need hands-on help with any of these, Green Turtle delivers tax preparation.
