GST and PST filing is the process of calculating, remitting, and reporting two separate Canadian sales taxes — the federal Goods and Services Tax and the British Columbia Provincial Sales Tax — on a recurring schedule set by the tax authorities. They are distinct taxes with distinct rules, administered by different governments, and a British Columbia business selling taxable goods or services typically files both.
GST — the federal piece
GST (Goods and Services Tax) is a 5% federal sales tax administered by the Canada Revenue Agency (CRA). It applies to most goods and services sold in Canada, with a specific list of exemptions (basic groceries, most residential rent, most financial services, most health and dental services).
A Canadian business is required to register for GST once its worldwide taxable revenue exceeds $30,000 in any single calendar quarter, or in four consecutive calendar quarters. Below that threshold, the business is a "small supplier" and GST registration is voluntary. Many businesses register voluntarily below the threshold so they can claim input tax credits on business purchases.
Filing frequency depends on revenue: quarterly is the default for most small businesses, monthly is required above $6M in annual taxable supplies, and annual filing is available below $1.5M. The CRA sets the frequency at registration and adjusts it as revenue grows.
A GST return captures two numbers. First, the GST collected from customers on sales. Second, the input tax credits (ITCs) — the GST the business paid on its own business purchases. The difference is either remitted to the CRA or, when ITCs exceed collections, refunded. Returns are filed through CRA My Business Account and are due one month after the reporting period closes for monthly and quarterly filers, three months after year-end for annual filers.
BC PST — the provincial piece
BC PST (Provincial Sales Tax) is a 7% provincial sales tax administered by the BC Ministry of Finance, separate from GST. It applies to most taxable goods sold in British Columbia, certain software and telecommunication services, and a specific list of taxable services (legal, accommodation, short-term vehicle rentals, and some others). The taxable-services list is narrower than GST's, which is why not every BC service business is a PST registrant.
A BC business is required to register for PST when it sells taxable goods or taxable services to customers in BC. There is no revenue threshold for PST registration — if you sell taxable goods in BC, you register. Out-of-province sellers above $10,000 in annual BC sales also register under the expanded rules introduced in 2020.
Filing frequency is assigned by the ministry at registration and ranges from monthly to quarterly to semi-annually, based on expected PST collected. Returns are filed through eTaxBC and are due by the last day of the month following the reporting period.
PST is not a value-added tax. Unlike GST, there are no input tax credits for PST paid on business inputs — the 7% paid on a business purchase is a real cost to the business, not a recoverable offset. The two systems look similar on the surface but behave very differently on the ledger.
The standard BC business filing cadence
For a small BC business with both GST and PST obligations, a typical cadence looks like this:
- GST: quarterly filing, due at the end of the month after each calendar quarter (Jan 31, Apr 30, Jul 31, Oct 31).
- PST: quarterly or monthly filing, due at the end of the month after the reporting period.
- Payroll source deductions: monthly, due by the 15th of the following month (more frequent for larger payrolls).
- T4 and T4A slips: annually, due by the last day of February.
- Corporate tax (T2): annually, due six months after fiscal year-end.
Bookkeeping should keep pace with this calendar, not lag behind it. Filings prepared from unreconciled books produce wrong numbers.
What happens when filings are late
The CRA charges a late-filing penalty on GST equal to 1% of the amount owing, plus 25% of that 1% for each full month the return is overdue, up to twelve months. Interest compounds on the balance. The BC Ministry of Finance charges interest from the day after the due date and can add penalties for repeat late filings.
Late filings are fixable. Most can be caught up through CRA My Business Account and eTaxBC without a formal Voluntary Disclosure, provided the tax authority has not already contacted the business about the missed periods. Where back-filings stretch beyond two fiscal years, or where contact has already been made, a Voluntary Disclosures Program submission through a tax CPA is usually the right route.
What this looks like in practice
A well-run bookkeeping engagement treats GST and PST as part of the monthly close, not as separate events. Each month, after reconciliation, the GST and PST collected and paid are reviewed, input tax credits verified against documentation, and the return queued for the scheduled filing date. On the due date, the filing is submitted, the remittance scheduled, and a confirmation filed with the owner.
For most BC owner-operators, the correct answer is not to learn GST and PST mechanics personally — it is to have a bookkeeper whose job it is. The filings are routine, the penalties for missing them are not.
For the full reference — registration thresholds, input tax credits, filing frequencies, penalty mechanics, and the 2026 deadline calendar — see the GST and PST filing guide for BC businesses.