BC PST Exemptions: Rules, Certificates and GST

A BC PST exemption depends on the item, purchaser, use and conditions in the provincial rules. Common BC PST exemptions include food for human consumption, children’s clothing and footwear, books, newspapers and magazines, bicycles, prescription drugs and other qualifying medical products, and goods bought solely for resale with a PST number or FIN 490. British Columbia generally charges 7% PST on taxable goods, software and certain services; federal GST is separate.

What is PST exempt in BC?

The province’s exemptions and documentation guide lists examples and conditions. The following are starting points, not a blanket exemption for every item in a category:

• Food for human consumption: many food products are exempt from PST, with exceptions including liquor, soda beverages and certain other drinks and edible cannabis. Federal GST treatment must be checked separately.
• Bicycles: non-motorized bicycles qualify; adult-sized non-motorized tricycles and certain electric cycles also qualify if the provincial specifications are met. An electric scooter is not automatically a qualifying e-bike.
• Children’s clothing and footwear: qualifying items can be PST-exempt, subject to the province’s definitions and exceptions.
• Health and medical products: specified household medical aids, and specified medical supplies and equipment for individuals with disabilities, can be PST-exempt. B.C. medical supplies and equipment guide.
• Books, newspapers and magazines: qualifying books, magazines, periodicals and newspapers are PST-exempt; the book exemption does not apply to directories, price lists or catalogues. B.C. books, magazines and newspapers guide.
• School supplies: specified items such as lined paper, pencils, ring binders and workbooks are exempt when obtained for the use of a student in an educational program provided by a qualifying school, or a student educated at home under the School Act; backpacks and attaché cases do not qualify. B.C. school supplies guide.
• Safety equipment and apparel: specified work-related safety equipment and protective clothing designed to be worn by a worker can be exempt, along with specified general safety equipment such as children’s car seats and portable fire extinguishers. B.C. safety equipment and protective clothing guide.
• Production machinery and equipment: qualifying machinery, equipment and related parts can be exempt when they meet the use tests for the specific activity (for a qualifying manufacturer, generally for use in B.C. primarily and directly in the manufacture of qualifying goods and primarily at the qualifying part of a manufacturing site); you cannot use a PST number instead of a completed Certificate of Exemption – Production Machinery and Equipment, FIN 492.
• Farming: certain specifically listed equipment and parts qualify when obtained by a qualifying farmer solely for a farm purpose. Give the seller a completed farmer certificate, FIN 458, or a valid B.C. Farmer Identity Card where the rules permit it.
• Goods for resale: qualifying goods purchased solely for resale can be exempt with the required evidence; small sellers have different rules, explained below.

Some exemptions apply because of the item’s nature; others depend on the purchaser and intended use. A seller should check the exact provincial entry before omitting PST and keep any required evidence. Medical products, vehicles, boats and production equipment have their own specific rules: a category name or an electric-vehicle label alone does not prove an exemption.

Are First Nations purchases exempt from BC PST?

First Nations individuals and bands are generally exempt from PST when they purchase goods or services on First Nations land for the individual’s personal use or for the use of the band; personal use may include business use, for example in a sole proprietorship. Goods are exempt if title to the goods passes on First Nations land; if the goods are delivered from a location off First Nations land, the seller or a common carrier under contract with the seller must deliver them, and the seller must retain ownership until they are delivered on First Nations land. Corporations or cooperatives with First Nations shareholders, tribal councils and band-empowered entities do not qualify for the general PST exemption, other than for professional services that relate to consultations and negotiations. An individual shows the seller a Certificate of Indian Status card or, if they have recently applied for and not yet received one, a Temporary Confirmation of Registration Document (TCRD) plus government-issued photo identification. For a purchase made in the band’s name, the seller records the band’s name and number; an individual buying on behalf of a band needs written authorization from the band, signed by an appropriate band official and showing the band name and number, plus government-issued photo identification. For the federal side, see GST exempt and zero-rated supplies. B.C. guidance for First Nations.

What changed in 2026?

Budget 2026 changed several PST exemptions. Effective February 18, 2026, B.C. amended the Provincial Sales Tax Act and the Exemption and Refund Regulation to let a seller give a point-of-sale exemption or refund to a business buying goods for use outside the province, with the purchaser, rather than the seller, removing the goods from B.C.; the purchaser must declare the goods are for business use, prove they will be shipped outside B.C. by the purchaser or a third party it contracts, confirm no use in B.C. except for shipping and storage, and give the seller a completed FIN 464. Effective October 1, 2026, B.C. eliminated the PST exemption for clothing patterns, yarn, natural fibres, synthetic thread and fabric commonly used to make or repair clothing, and for services to clothing or footwear (except services to exempt protective clothing or footwear); dry-cleaning, wet-cleaning and laundry services stay exempt. The same date removed the exemptions for basic cable television, toll-free telephone and residential landline telephone services. On September 18, 2026, B.C. announced it was pausing a planned expansion of PST to certain professional services; see what changed and what was paused. B.C. Budget 2026.

What services are PST exempt in BC?

PST applies to specified services, not to every service. Unless a specific exemption applies, PST applies to legal services, telecommunication services (including internet services and certain digital content such as music and movies), services to or to install taxable goods (such as vehicle maintenance, furniture assembly or computer repair), short-term accommodation in B.C., and online marketplace services. Federal GST can still apply to a service. B.C. small business guide to PST.

On September 18, 2026, B.C. announced it was pausing the planned October 1, 2026 expansion of PST to professional services, including accounting and bookkeeping, architectural, geoscientist and engineering services, non-residential real estate commissions and services, and security and private investigation services. Check the province before treating any of these as taxed: see the B.C. announcement and what changed and what was paused for the current status.

If a transaction includes goods, software or related services, examine each component and the applicable bundling rules. Labelling an invoice “consulting” does not settle the tax treatment of everything supplied.

Resale: PST number or FIN 490

A business acquiring goods solely for resale generally gives its supplier its PST number, or, if it does not have one, a completed Certificate of Exemption – General, FIN 490, when the applicable resale exemption is available. A certificate is evidence for a qualifying purchase, not permission to make every purchase tax-free. Goods taken from resale stock for business or personal use may require the business to self-assess PST. Contractors installing goods into real property should check the special contractor rules instead of assuming materials are resale inventory. B.C. resale guidance; small business guide.

Example: A registered reseller buys $100 of goods solely for resale, provides the required evidence and the exemption applies. If the purchase is GST-taxable at 5%, the invoice is $100 plus $5 GST and no PST: $105. Had both ordinary 7% PST and 5% GST applied to that $100, the total would be $112. An eligible GST/HST input tax credit may recover GST paid on qualifying commercial inputs, subject to the federal rules; it is not a PST credit or an automatic refund.

Small sellers and registration

B.C.’s small-seller rules are separate from the federal GST/HST small-supplier rules: a qualifying PST small seller generally does not register or collect PST on eligible sales, but still pays PST when buying goods for resale. The test looks at location, premises and a $10,000 gross-revenue limit for both the preceding and estimated next 12 months, so check the full conditions before assuming it applies. A seller who is required to register for BC PST but does not register still has to collect and remit PST.

If PST was charged in error

Keep the receipt, exemption evidence and details of how the item was used. Ask the supplier about a correction; B.C. says a supplier may refund or credit PST on qualifying resale goods within 180 days, and a provincial refund application may be available. Deadlines and evidence depend on the claim, so use B.C.’s current instructions rather than assuming a refund is automatic. B.C. resale guidance.

B.C.’s 12% HST applied from July 1, 2010 through March 31, 2013; the province returned to separate GST and PST on April 1, 2013. Historical HST exemptions and rebate figures should not be used to calculate today’s PST. B.C. historical tax record.

The exemptions above are examples; the full legal text is in the Provincial Sales Tax Act and the Provincial Sales Tax Exemption and Refund Regulation. Sources checked October 22, 2026.