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Advisory

Advisory

Provincial sales tax on non-residential real estate services
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Date
28 July 2026
Advisory Number
26-030
Distribution
Real Estate Professionals

Purpose

BCFSA is issuing this advisory to inform real estate licensees of details regarding the application of the provincial sales tax (PST) to non-residential real estate services.

Background

As announced in Budget 2026, the BC government is expanding the application of PST to certain real estate services. Effective October 1, 2026, a 7 per cent PST will apply to “non-residential real estate services” provided in relation to real property located in British Columbia.

Non-residential real estate services include trading services, rental property management services, and strata management services provided by real estate licensees (or those required to be licensed) under the Real Estate Services Act when those services relate to non-residential property. Services provided by a person to the person’s employer in the course of employment are not considered non-residential real estate services for PST purposes.

PST does not apply to services provided in relation to property classified as Class 1 (Residential) or Class 3 (Supportive Housing) under the Assessment Act. In addition, services related to Class 9 (Farm) property are exempt from PST.

Under the new legislation, purchasers of non-residential real estate services must pay PST on the purchase price of those services. The purchase price refers to the total amount paid for those services, not the price of the real property itself. Certain fees and charges are excluded from the price of non-residential real estate services, including fees and charges for the transmission, printing or copying of documents, and travel, food, or accommodation expenses incurred by the service provider.

Where services relate to mixed-use property (partly residential and partly non-residential), PST only applies to the portion of services related to the non-residential, non-exempt component.

A number of exemptions also apply. For example, non-residential real estate services related to qualifying property on First Nation land, or provided to a First Nation individual or band under certain circumstances, are exempt from PST. In addition, “accounting services,” as defined in the legislation, that are provided by a licensee in the course of providing rental property management or strata management services are also exempt.

Businesses providing taxable professional services, including non-residential real estate services, must register to collect and remit PST if they are not already registered.

For more information, including transitional rules and a full list of exemptions, please consult the provincial government resources referenced below. Brokerages with questions about their PST obligations should seek advice from a qualified tax or accounting professional.

Additional information