British Columbia charges a 7% Provincial Sales Tax (PST) in addition to the 5% federal Goods and Services Tax (GST), for a combined 12% on most purchases. Unlike provinces with Harmonized Sales Tax (HST), BC's taxes are collected separately—businesses must track and remit each tax individually. The PST applies to most goods and some services, though exemptions exist for basic groceries, children's clothing, and certain other items. BC's decision to maintain separate PST rather than HST (following a referendum that rejected HST) means businesses face more complex compliance but the provincial government retains direct control over tax rates and exemptions.