To: All Valued Clients and Procurement Partners
Active Projects & Accounts Division

IMPORTANT NOTICE: Application of BC Provincial Sales Tax (PST) to Engineering and Geoscience Services Effective October 1, 2026

Dear Valued Client,

We are writing to inform you of an upcoming statutory change regarding how British Columbia Provincial Sales Tax (PST) will be applied to professional engineering and geoscience consulting fees. This notice is intended to provide you with ample lead time to adjust your project budgets, financial forecasting, and procurement systems accordingly.

As part of the 2026 British Columbia Budget legislative requirements enacted by the Provincial Government, professional services rendered by engineers and geoscientists registered with the Association of Professional Engineers and Geoscientists of BC (EGBC) are no longer fully exempt from provincial taxation. Beginning October 1, 2026, all firms providing these professional services within BC are legally mandated to collect the 7% PST on a designated portion of their services.

Specifically, the regulation dictates that PST must be levied on 30% of the total gross fee charged for all engineering and geoscience services. To assist your accounting departments, the tax calculation will be structured as follows:

Taxable Base = Total Service Fee × 0.30
PST Due = Taxable Base × 0.07

Please note that the federal Goods and Services Tax (GST) of 5% will continue to apply to the full pre-tax amount of the invoice as per standard practices.

Key Implementation Details:

Effective Date: October 1, 2026. This timeline is determined strictly by provincial mandate.

Applicability: The tax applies to all active and new contracts, milestones achieved, or time-and-materials services performed on or after the effective date.

Invoicing Layout: Your future invoices will show a separate, explicit line-item detailing the PST collected on the 30% taxable portion, maintaining strict compliance and transparency.

For more information on the PST expansion and how it may apply to your organization or the services you receive, please review the BC Government Publications: https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/publications/engineering-geoscience-services

We highly recommend reviewing your open purchase orders and capital expenditure project forecasts that extend beyond October 1, 2026, to accommodate this legislative adjustment. Our team is committed to making this administrative transition as seamless as possible for your organization.

We deeply value your partnership and the opportunity to support your projects. If you require revised budgetary estimates for upcoming project phases, please reach out to your designated Metro Project Manager. If you have any questions about how this tax change applies to your specific active contracts, please reach out to myself or our Contract Analyst, Vanessa Vizi (vvizi@metrotesting.ca), to discuss.

Thank you for your understanding and continued trust in our professional services.

Yours truly,
Metro Testing & Engineering Ltd.

Victor Bains
Chief Financial Officer
e: vbains@metrotesting.ca

Experience applied.
t: 604.436.9111 · tf: 1.844.732.2638 · metrotesting.ca

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Metro Testing & Engineering, 401-6741 Cariboo Rd, Burnaby, BC V3N 4A3, Canada

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