B.C. PST on security services and alarm monitoring in 2026

Start with the security-business licence test

For this new professional-service rule, B.C. defines security services by both the work and the provider. The service must be provided by a person who holds or is required to hold a security business licence for one of five listed security businesses. A job title, a camera, an alarm panel, or the word security on an invoice does not settle the classification.

If a licensed business performs work unrelated to its licensed security business, that other work is not a security service merely because of the licence. The Province uses locksmith work by a licensed security guard service as an example. Separate PST rules may still apply to that other work.

Separate alarm monitoring from alarm-system work

B.C. draws a sharp line inside security alarm work. Stand-alone monitoring sold on or after October 1, 2026 is taxable as a security service unless a specific exemption applies. The Province describes monitoring as a centre receiving an alert and sometimes dispatching a guard or notifying police, usually for a monthly or annual fee.

Security alarm services other than monitoring an alarm installed on another person's property are exempt from PST as security services. The Province specifically names selling, advising on, installing, repairing, and maintaining security alarms. That sentence does not make the whole transaction PST-free: the security-system, contractor, goods, software, telecommunication, and bundled-sale rules must still be reviewed.

Classify cameras, panels, cables, and installation separately

The separate B.C. security-systems page divides installed systems into components that become part of real property, components that remain goods, and mixed systems. That analysis is especially important for alarm companies doing low-voltage cabling, camera installation, access-control work, repairs, and monitoring under one contract.

For components that become part of real property, the contractor generally pays PST when acquiring the components and does not charge the customer PST on the system or installation. For a system whose components remain goods, the contractor charges the customer PST on the components and installation. Mixed systems require the two groups to be separated; a single unitemized price can trigger the bundled-sale rules.

Build the taxable purchase price before multiplying by 7%

For a confirmed taxable security service, B.C. applies 7% PST to the taxable purchase price. Fees and charges are generally included. Charges for transmitting, printing, or copying documents are excluded only when they reasonably reflect the actual cost; a markup returns them to the taxable purchase price.

Most disbursements are also included. Travel, food, accommodation, and towing disbursements are excluded when they reasonably reflect the actual cost of providing the security service; a markup makes them part of the purchase price. A private investigator's recovered database-access fee is the Province's example of an ordinarily included disbursement.

Apply the percentage only after separating exempt, non-security, out-of-province, software, telecommunication, goods, contractor, and bundled components. The free B.C. calculator can then calculate a confirmed taxable security-service amount without deciding the classification for you.

Check the B.C. connection even when one party is elsewhere

A provider or purchaser outside B.C. does not automatically remove the tax. The provincial page addresses services provided in and outside B.C. and looks to the purchaser and whether the work relates to B.C. real property, goods, another property right, a physical or legal presence, or an activity or transaction in B.C.

The Province's examples include alarm monitoring for B.C. property by an out-of-province provider that holds or must hold the B.C. licence. When taxable security services are purchased outside B.C. and PST is not charged, the purchaser may need to self-assess. Work reasonably attributable to another jurisdiction may be exempt in whole or in part, but the allocation and supporting facts should be retained.

Review exemptions, small-seller status, and registration

Published exemptions include qualifying house-sitting at an individual's private residence, security services related to another jurisdiction, services purchased solely for resale, certain First Nations situations, specified related-corporation employee services, qualifying diplomatic or federal-government purchases, and purchases from a B.C. PST small seller. Every exemption has conditions and evidence requirements.

A B.C.-located provider can use the small-seller exception only if every PST 003 criterion is met, including both C$10,000-or-less revenue periods, the premises rules, and the activity restrictions. A security-system installer that is a real-property contractor may fail that test even with low revenue, so use the full checker rather than the federal GST/HST C$30,000 threshold.

If the provider sells taxable security services on or after October 1 and no exemption applies, it must register through eTaxBC unless it qualifies as a small seller. B.C. also says sellers of any taxable security services must file and pay electronically.

Apply the October transition to each contract and invoice line

If consideration is paid or becomes due before October 1, 2026 and the security services are provided entirely before December 1, PST does not apply to that consideration. If any of those services are provided on or after December 1, PST applies to the consideration attributable to services provided on or after October 1.

When consideration is paid or becomes due on or after October 1, PST applies to the taxable security service regardless of when the work was provided, unless an exemption applies. Review annual monitoring contracts, prepaid months, installation plus monitoring bundles, delayed invoices, app access, cellular service, disbursements, and equipment lines separately.

Save the licence-scope conclusion, service and equipment classification, contract, due and payment dates, work period, taxable-base worksheet, exemption evidence, invoice, small-seller or registration result, and the July 31 source version. Recheck the official pages before the first affected invoice.