hello@kootenaymade.ca
Castlegar, BC. Serving the Kootenays and beyond.
7 min
Key takeaways
- BC says PST does not apply to web design that includes no software, telecommunication service or goods (checked September 2026).
- Web hosting is taxable in BC as software, at 7%. Domain registration is not taxable.
- Audio, video and animated video are taxable as telecommunication services, unless they are incidental to the design.
- Custom software made solely for you is exempt from PST. Pre-written software is taxable unless an exemption applies.
- GST is 5% in BC when the designer is registered, and registered businesses can usually claim it back.
On this page
Is website design subject to PST in BC?
Usually not. BC says PST does not apply to web design services that do not include software, a telecommunication service such as audio or video, or goods. Web hosting is taxable, because BC treats it as software. Domain registration is not taxable. GST is separate, at 5% when the designer is registered.
BC states the rule on its page about telecommunication services, published July 13, 2026. Its own example is a simple website that gives information about a customer’s business, with no audio, video or software, delivered over the internet. PST does not apply to that design. Bulletin PST 123, for graphic designers, says the same thing about website design and development.
One more date matters this fall. BC’s July 2026 bulletin lists the services that become subject to PST on October 1, 2026: accounting, architectural, engineering and geoscience, non-residential real estate, and security services. Web design is not on that list.
Which parts of a website quote carry PST in BC?
Hosting, email service, audio and video, pre-written software, and goods carry PST. The design work, the domain registration, and custom software made only for you do not. When a quote lists each part separately, PST applies to the separate charges for the taxable parts.
| What is being compared | PST in BC | Why |
|---|---|---|
| Web design and development, delivered online | No PST | BC says PST does not apply when no software, telecommunication service or goods are included |
| Web hosting | PST | BC treats hosting as electronic storage, taxable as software |
| Email service sold with hosting | PST | A telecommunication service |
| Domain registration | No PST | BC says it is not a telecommunication service |
| Audio or video on the site, including animated video | PST | A telecommunication service, unless incidental to the design |
| A pre-written software licence, like a paid plugin or app | PST | Software, unless an exemption applies |
| Custom software made for you | Exempt | Software developed solely to meet your requirements |
| Goods, like the site on a USB drive or printed business cards | PST | Tangible goods |
BC gives its own example. A customer pays $500 for web design and $25 for a copy of the site on a USB drive. PST applies to the $25. PST 123 has a bigger one. A designer builds a website with no taxable parts for $4,000 and prints business cards for $500. PST applies to the $500 only.
What if the quote is one price for everything?
Then BC asks whether the taxable parts are incidental. They are incidental, and not taxed, when the contract is mainly for web design and the price is the same or only slightly different without them. Otherwise it is a bundled sale, and PST applies to the fair market value of the taxable parts.
BC’s example is a $500 web design price that includes $2 of stock video and a $1 backup DVD. The design is the point of the contract, and the price barely moves without the extras. So PST does not apply to the $500. The designer pays PST when they buy the stock video and the DVD.
The bundled case works differently. PST 123 describes a single $4,500 price for a website and business cards, where the cards are worth $500 on the open market. PST applies to the $500.
The design is not taxed. The things riding along with it can be, and a one-line quote hides which ones.
Is custom software exempt from PST in BC?
Yes, for the person it was made for. BC defines custom software as software developed solely to meet the requirements of a specific person. Software modified only for you also qualifies when the modified price is more than double the unmodified one. Pre-written software is taxable unless an exemption applies.
BC also puts a duty on the seller. Their records must show why they sold software exempt, for example by noting on the invoice that it was custom software. Whether a particular website build counts as custom software depends on what was delivered. That question goes to BC’s Ministry of Finance.
Do I pay PST on a monthly website platform fee?
Generally, yes. BC taxes software at 7%, including software used online and web hosting, when it is used on a device ordinarily in BC. A website builder plan bundles hosting with online software. BC says the server’s location does not change the rule.
Some platforms bill from outside BC. If a supplier does not charge you PST, BC says you must self-assess it and pay it directly to the province. The deadline is the last day of the month after the purchase. The guide to website hosting in Canada explains what the hosting line on your bill actually pays for.
What does GST do to a website quote in BC?
A designer registered for GST/HST adds 5% GST in BC. A designer under the CRA’s $30,000 small supplier limit who has not registered does not charge it. If your business is registered, you can usually claim the GST you pay back as an input tax credit.
So one quote can carry two taxes on different lines. GST follows the designer’s registration. PST follows what each line is. The guide to whether a website is tax deductible in Canada covers what happens to the cost itself at tax time.
What should a clear website quote show?
Every part on its own line, and which lines carry PST and GST. Then you can check the tax against BC’s rules yourself, and the total holds no surprises. A quote that gives one number for everything makes that check hard.
- Design and development as its own line.
- Hosting as its own line, monthly or yearly, and who holds the account.
- The domain registration as its own line, in your name.
- Any paid software, plugin, app or subscription, each on its own line.
- Any video, audio or animation the designer supplies.
- Any goods, like printed cards or signs.
- Which lines carry PST, and whether GST is added to the total.
Surprise charges after the quote are a pricing problem as much as a tax one. The guide to hidden website fees and drip pricing in Canada covers the add-ons that show up late. The website cost guide covers what the whole build should cost.
This guide is general information, not tax advice. For your own quote, ask an accountant, or call BC’s Ministry of Finance at 1-877-388-4440.
Sources and further reading
- Telecommunication services: PST (Government of BC)
Read September 23, 2026 (published July 13, 2026). The web design, web hosting and domain registration sections, the incidental goods rule with its $500 example, and the 7% rate.
- Software: PST (Government of BC)
Read September 23, 2026 (published December 17, 2025). 7% PST on software, including software as a service and web hosting, the self-assessment rule, and the custom software exemption.
- Bulletin PST 123, Graphic Designers (Government of BC)
Read September 23, 2026 (revised October 2022). Design services are generally not subject to PST. A logo sent by email is not taxed. It also gives the example of a $4,000 website with $500 of business cards.
- Bulletin PST 003, Small Sellers (Government of BC)
Read September 23, 2026 (revised July 2026). It lists the services that become subject to PST on October 1, 2026.
- GST/HST rates by province (Canada Revenue Agency)
Read September 23, 2026. 5% GST in British Columbia.
- When to register for and start charging the GST/HST (Canada Revenue Agency)
Read September 23, 2026 (modified June 16, 2026). The $30,000 small supplier limit.
- Input tax credits (Canada Revenue Agency)
Read September 23, 2026 (modified November 19, 2024). GST/HST registrants recover the GST/HST paid on purchases for their commercial activities.
Frequently asked questions
Do web designers charge PST in BC?
Not on the design itself, in most cases. BC says PST does not apply to web design services that do not include software, a telecommunication service such as audio or video, or goods. If the quote includes hosting, video or a USB drive, PST applies to those parts. Checked September 2026.
Is web hosting subject to PST in BC?
Yes. BC treats web hosting as electronic storage, which it taxes as software at 7%. Email services and server control panels bought with hosting are taxable too. If a hosting company outside BC does not charge you PST, BC says you must self-assess it.
Is a domain name subject to PST in BC?
No. BC says PST does not apply to domain registration services, because they are not telecommunication services. Checked September 2026.
Do I pay GST on website design in BC?
Yes, if the designer is registered for GST/HST. The rate in BC is 5%. A designer under the $30,000 small supplier limit who has not registered does not charge it. If your own business is registered, you can usually claim the GST back as an input tax credit.
Is logo design subject to PST in BC?
Not when the logo is delivered digitally. Bulletin PST 123 says a designer does not charge PST for a logo sent only by email. PST applies to goods, like printed business cards, and to the whole price if the cards are a required part of the logo deal.
Related pages
Kootenay Made Digital
I build websites, local presence, and calm AI setups for Kootenay small businesses. Plain language, published prices, and clear work that makes you easier to find and easier to choose.
