Learn how the 2026 BC budget will affect strata corporations through the introduction of a 7% PST on consulting fees. Understand the implications for strata budgets and planning.
The provincial budget, set to take effect in October 2026, includes a change that will impact strata corporations across British Columbia. This change involves the introduction of Provincial Sales Tax (PST) on consulting fees paid by strata corporations.
As of October 2026, a 7% PST will be applied to consulting fees that strata corporations contract. This means any professional advice or services that a strata corporation pays for will now be subject to this additional tax.
Strata corporations manage common property and assets of residential buildings or developments where ownership is divided into individual units (strata lots). They are responsible for the upkeep, maintenance, and management of these shared areas, and rely on fees collected from unit owners to fund these activities. These activities often require the engagement of consultants.
While the announcement specifies consulting fees, the budget does not define the specific types of consulting services that will be subject to the PST. These consulting services can include a wide range of expertise. Examples could be:
The introduction of PST on consulting fees will likely increase the operational costs for strata corporations. This is because the total cost of hiring consultants will rise by 7%. To cover these increased costs, strata corporations will need to consider several options.
Strata councils and management companies should proactively assess the impact of this new tax on their budgets and financial planning. Contracts beginning or extending past the implementation date will be subject to the PST.
Strata corporations may need to review their existing contracts with consultants and factor the additional 7% PST into their financial forecasts. Consulting with financial advisors and legal professionals is highly recommended.
As the implementation date approaches, further clarification from the provincial government regarding the specific types of consulting services subject to PST is expected. Strata corporations should stay informed about these developments and adapt their strategies accordingly to ensure compliance and effective financial management.
