Credit card processing and merchant services in British Columbia
B.C. collects its own PST beside the federal GST, with different rates for liquor and lodging. Get the tax lines right first, then find out what card acceptance is really costing you.
Card surcharges
Allowed with limitsAllowed on Visa and Mastercard credit cards up to the lesser of 2.4% or your cost, with notice and disclosure; never on debit or prepaid.
Sales tax
5% GST + 7% PST (12% combined)
Last checked
October 6, 2026
British Columbia is one of four provinces that charge their own sales tax on top of the 5% GST, and it runs that tax itself. You register for PST with the province and report it to the province, separately from your GST account with the CRA. Small sellers get a pass: if your gross revenue from taxable sales was $10,000 or less over the past 12 months, and you expect the same over the next 12, you don't have to register.
The 7% rate everyone quotes is only the general rate. Liquor carries 10% PST. Short-term accommodation carries 8%, plus a municipal and regional district tax (MRDT) of up to 3% in participating areas. Food for human consumption, restaurant meals included, is exempt, but soda isn't. A pub that rings everything through at 12% is overcharging on food and undercharging on beer.
Two newer rules affect what you charge. Since July 15, 2024, you have to charge at least 25 cents for a new paper shopping bag and at least $2 for a new reusable one, so set them up as POS items. And the planned extension of PST to accounting, architectural, engineering, geoscience, non-residential real estate and security services is paused, so firms in those fields keep their exemption for now.
Surcharging is legal here within the card network limits. Only credit cards qualify, the surcharge can't go past 2.4% or past your own cost of acceptance, and it needs 30 days' notice and signage. ISED counted 170,512 small employer businesses in B.C. as of December 2024, the most in Western Canada. If yours is one of them, send us a statement: a free statement review shows your effective rate and what interchange-plus pricing would change. City details are on our Vancouver, Surrey, Victoria, Burnaby, Kelowna, Richmond, Abbotsford, Kamloops, Nanaimo, Coquitlam and Saanich pages.
What British Columbia merchants should know
Surcharging credit cards in B.C.
FCAC says merchants can add a surcharge to credit card payments everywhere except Quebec, so in B.C. the Visa and Mastercard rules set the limits. The surcharge applies to their credit cards only, never to Visa or Mastercard debit or prepaid cards, and it can't be more than 2.4% or your average cost of acceptance, whichever is lower.
Give 30 days' notice before you start: Visa requires written notice to your acquirer, and Mastercard requires notice to Mastercard and your acquirer. Then post the surcharge at the entrance and the point of sale, print the amount on each receipt, and refund it when you refund the sale. Our surcharging program covers the setup and disclosure.
Sources: Financial Consumer Agency of Canada, Merchant surcharges, service and convenience fees, and discounts; Visa Canada, Surcharging FAQ for businesses (PDF); Mastercard Canada, What merchant surcharge rules mean to you in Canada
GST and PST rates
Most taxable sales in B.C. carry the 5% GST plus the 7% PST, 12% in total. Some PST rates differ: liquor is taxed at 10%, and short-term accommodation at 8%, with up to 3% MRDT added in participating areas.
Food for human consumption, including restaurant meals, is exempt from PST, while soda beverages are taxable. Give each rate its own tax code in your POS and online checkout so your PST return matches your sales.
Sources: Canada Revenue Agency, Charge and collect the GST/HST: which rate to charge; Government of British Columbia, Small business guide to PST; Government of British Columbia, PST and MRDT on accommodation
Who has to register for PST
You must register to collect PST if you're located in B.C. and sell or lease taxable goods, or provide software or taxable services. Small sellers don't have to: that means $10,000 or less in gross revenue from retail sales of eligible goods, software and services in the previous 12 months, and an estimate of $10,000 or less for the next 12.
Repair work counts. B.C. treats repairing vehicles and other taxable goods as a taxable related service, and the price of the service includes labour and travel time. Services to real property are not subject to PST.
Sources: Government of British Columbia, Register to collect PST; Government of British Columbia, Small business guide to PST; Government of British Columbia, Bulletin PST 301, Related Services (PDF); Government of British Columbia, Charging and collecting PST for contractors
Shopping bag fees
Since July 15, 2024, plastic shopping bags have been banned in B.C., and businesses must charge at least $2 for each new reusable shopping bag and at least 25 cents for each new paper shopping bag. Let customers know about the fee, and set the bags up as items on your POS so the charge lands on the receipt. The regulation has exceptions, so check the factsheet against what you sell.
Sources: Government of British Columbia, Single-Use and Plastic Waste Prevention Regulation; Government of British Columbia, Shopping bag factsheet (PDF); BC Gov News, New plastic regulations will keep more plastic waste out of communities
PST on professional services is paused
As of October 2026, B.C. has paused its planned expansion of PST to accounting, architectural, engineering, geoscience, non-residential real estate and security services. The pause is being made through a temporary regulation, and the PST exemption is maintained for these services, including bookkeeping, private investigation and non-residential real estate commissions.
If you run one of these firms, leave PST off those invoices and check the province's notice before you change anything.
Sources: Government of British Columbia, Notice 2026-001: Notice to providers of professional services; BC Gov News, B.C. pauses PST expansion to professional services amid ongoing trade uncertainty
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Common questions
Can a B.C. business add a surcharge to credit card payments?
Yes, within the card network rules. You can surcharge Visa and Mastercard credit cards by up to the lesser of 2.4% or your cost of acceptance, after 30 days' notice, with signs at the entrance and the till and the amount printed on the receipt. Visa and Mastercard debit and prepaid cards can't be surcharged. A free statement review tells you your real cost of acceptance before you pick a number.
Do I charge PST on restaurant meals in B.C.?
No. B.C.'s small business guide lists food for human consumption, including prepared food such as restaurant meals, as exempt from PST. Liquor carries 10% PST and soda beverages are taxable, so set up separate tax codes for food, soft drinks and alcohol. Our restaurant page covers the payment side of running a kitchen.
Do accountants and engineers in B.C. charge PST on their fees now?
Not as of October 2026. B.C. paused its planned expansion of PST to accounting, architectural, engineering, geoscience, non-residential real estate and security services, and says the exemption is maintained through a temporary regulation. Check the province's notice before you change your invoices. Our professional services page covers invoicing and card payments for firms.
What do B.C. businesses have to charge for shopping bags?
At least 25 cents for each new paper shopping bag and at least $2 for each new reusable bag, under rules in force since July 15, 2024. Plastic shopping bags are banned. Let customers know about the fee and ring bags up as items on your POS terminals so the charge shows on the receipt.
Do I have to register for PST if my B.C. sales are small?
Maybe not. You count as a small seller if you had $10,000 or less in gross revenue from retail sales of eligible goods, software and services in the previous 12 months and expect $10,000 or less in the next 12. GST has a separate federal threshold: you're a small supplier at $30,000 or less in taxable revenue over four consecutive calendar quarters.
Other provinces and territories we serve besides British Columbia
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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