BC GST + PST: 12%
Need to separate GST and PST from a gross BC total? Use the TaxBackwards.ca reverse GST and PST calculator.
British Columbia applies two separate taxes on most purchases: the 5% federal Goods and Services Tax (GST) and the 7% BC Provincial Sales Tax (PST), for a combined rate of 12%. The taxes are administered by different authorities — GST by the Canada Revenue Agency, PST by the BC Ministry of Finance. The most important distinction for bookkeepers: PST is a consumer-level tax and is generally not recoverable as an Input Tax Credit.
How BC Reverse Tax Calculation Works
To extract the net pre-tax amount from a gross BC total, divide by 1.12. From the net, multiply by 0.05 to isolate the GST and by 0.07 to isolate the PST. The two portions together equal the total tax paid.
Worked example 1: $112.00 gross ÷ 1.12 = $100.00 net. GST = $100.00 × 0.05 = $5.00. PST = $100.00 × 0.07 = $7.00. Total tax = $12.00.
Worked example 2: $224.00 gross ÷ 1.12 = $200.00 net. GST = $200.00 × 0.05 = $10.00. PST = $200.00 × 0.07 = $14.00. Total tax = $24.00.
Common BC Tax Amounts
| Gross Total | Net (Pre-Tax) | GST (5%) | PST (7%) | Total Tax |
|---|---|---|---|---|
| $11.20 | $10.00 | $0.50 | $0.70 | $1.20 |
| $56.00 | $50.00 | $2.50 | $3.50 | $6.00 |
| $112.00 | $100.00 | $5.00 | $7.00 | $12.00 |
| $224.00 | $200.00 | $10.00 | $14.00 | $24.00 |
| $560.00 | $500.00 | $25.00 | $35.00 | $60.00 |
| $1,120.00 | $1,000.00 | $50.00 | $70.00 | $120.00 |
✓ Rates verified
GST Input Tax Credits in BC
If your business is registered for GST with the CRA, the GST portion of eligible business expenses is recoverable as an Input Tax Credit. Use the extracted GST amount from the calculator as your ITC-eligible figure, and verify eligibility against CRA guidelines before filing. Only the federal GST qualifies — PST does not.
BC PST Is Not an Input Tax Credit
This is the most important BC-specific tax fact for bookkeepers and small business owners: BC PST paid on business inputs is generally not recoverable. Unlike the HST system in Ontario or the GST/QST system in Quebec (where ITCs or ITRs apply to both components), BC PST flows through to the business as a real cost. It cannot be claimed back from the BC Ministry of Finance in the normal course of business.
Some specific PST exemptions exist for manufacturers, certain resellers, and qualifying business inputs — but these must be applied at point of purchase using a PST exemption certificate. There is no refund mechanism equivalent to an ITC for PST after the fact.
When recording BC transactions, the GST portion belongs on your ITC line. The PST portion is a business expense, not a recoverable tax.
BC Tax Exemptions
- Basic groceries (most food intended for human consumption)
- Prescription drugs and biologics
- Certain medical devices and assistive technologies
- Some manufacturing inputs and qualifying resale inventory (PST exemption at point of purchase — requires a PST exemption certificate)
BC GST + PST — Frequently Asked Questions
- What is the combined sales tax rate in British Columbia?
- BC charges 5% federal GST plus 7% provincial PST, for a combined rate of 12% on most goods. The two taxes are administered separately: GST by the CRA, and PST by the BC Ministry of Finance.
- How do I reverse-calculate GST and PST from a BC gross total?
- Divide the gross total by 1.12 to get the net pre-tax amount. Multiply the net by 0.05 for GST and by 0.07 for PST. Example: $112.00 ÷ 1.12 = $100.00 net; GST = $5.00; PST = $7.00.
- Is BC PST an Input Tax Credit?
- No. BC PST is a consumer-level tax and cannot be recovered as an Input Tax Credit. Unlike GST, PST paid on business inputs is a real cost — it stays with the business. Only the GST portion qualifies as an ITC for GST-registered businesses.
- What is exempt from PST in BC?
- Basic groceries, prescription drugs, most medical devices, children's clothing and footwear, and most services are exempt from PST. Certain business inputs for manufacturing or resale may also qualify. Consult the BC Ministry of Finance PST exemptions schedule for the full list.
- When do I need to register for PST in BC?
- If you sell taxable goods or certain services in BC and your annual taxable sales exceed $10,000, you are generally required to register. Small sellers under $10,000 are typically exempt. Register online through the eTaxBC portal at etax.gov.bc.ca.
- Do I charge PST on services in BC?
- Most services in BC are PST-exempt. PST generally applies to goods, not services. Key exceptions include telecommunication services, legal services, and certain software. Pure consulting, bookkeeping, design, and personal services typically do not attract PST on the service fee itself.
- Is PST charged on used cars in BC?
- Yes, but BC vehicle PST is tiered — not a flat 7%. For dealer purchases, PST ranges from 7% (under $55,000) up to 20% for vehicles over $150,000, plus 5% GST. For private sales, only PST applies (no GST), based on the greater of the purchase price or Canadian Black Book wholesale value, using the same tiered rates.
- Is GST charged on private vehicle sales in BC?
- No. Private vehicle sales in BC are subject to PST only — no GST. PST is paid at the time of ICBC registration. GST only applies when buying from a licensed dealership.
- How do I register for PST in BC?
- Register online through the eTaxBC portal at etax.gov.bc.ca. Registration takes under 15 minutes in most cases. File and pay PST returns through the same portal once registered.
British Columbia and GST + PST: Background
British Columbia was one of the early adopters of HST in Canada, implementing the Harmonized Sales Tax on July 1, 2010, alongside Ontario. The combined HST rate was 12%, replacing the separate GST and PST system. The transition was controversial: it altered the tax treatment of many consumer goods and services, and removed PST exemptions that had previously applied to certain business inputs. Within months of implementation, a citizen-initiated referendum organized under BC's Recall and Initiative Act gathered enough signatures to trigger a province-wide vote on reversing the change. In 2011, British Columbians voted to reject HST, making BC the only province in Canadian history to adopt and then formally repeal HST through a democratic referendum.
BC returned to the split GST + PST structure on April 1, 2013. Under the current system, the 5% federal GST is administered by the Canada Revenue Agency and is fully ITC-eligible for registered businesses. The 7% BC PST is administered by the BC Ministry of Finance and is generally not recoverable after purchase — it is a consumer-level tax, and there is no mechanism equivalent to an ITC for reclaiming PST on business inputs in the normal course of business. Businesses operating in BC must track both taxes separately: only the GST portion belongs on the ITC line of their CRA return; the PST portion is a real business expense.
Federal GST — Official CRA Resources
BC PST — Ministry of Finance Resources
← Calculate BC GST + PST on TaxBackwards.ca
Calculations are arithmetic estimations only and do not constitute formal tax or corporate auditing advice. All figures must be verified against current CRA and BC Ministry of Finance guidelines before filing.