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British Columbia Announces a Partial and Temporary Pause on Budget 2026 Measures

Radhika Akhil
September 29, 2026

As of September 18, 2026, British Columbia announced a temporary pause on the planned expansion of provincial sales tax on professional services. Originally, the plan was to tax accounting and bookkeeping, architectural, geoscientist and engineering services, non-residential real estate commissions and services, and security and private investigation services beginning October 1, 2026. However, the government cited the ongoing trade war as adding onto the economic pressure many businesses would be facing as the reason for the temporary pause. More information may be found here.

Note, however, the Budget also planned for an end on the exemption on items used in making or repairing clothing (e.g., fabrics, yarn, thread, etc.) as well as any service related to clothing and footwear (except basic laundry services). These items and services will still be taxable from October 1, 2026, onward.

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Author

Radhika Akhil

Radhika Akhil is a Regulatory Counsel in the Sovos Regulatory Analysis & Design Department. Radhika focuses on U.S. sales tax law and Canada provincial taxes and fees. Radhika is a member of the Massachusetts Bar and the New York Bar. She has obtained 2 B.A. degrees from Boston University and a J.D. from Suffolk University Law School.
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