Canada Tax Update — July 11, 2026
Reporting period: July 4–11, 2026
Changes since last brief
This week produced one material indirect-tax implementation development: British Columbia finalized the regulations and detailed administrative rules for extending PST to specified professional services.
The federal pre-budget consultation formally opened, creating a September 8 submission deadline. Revenu Québec also introduced a new online process for completing or correcting solidarity tax credit claims.
No material new federal or Ontario income-tax legislation, CRA technical interpretation, or Canada Gazette tax regulation was identified during the seven-day scan. Previously reported items—such as Bill C-30, Ontario’s small-business rate change and the enriched Canada Groceries and Essentials Benefit—are therefore not repeated.
Top 3 changes
1. B.C. finalizes PST rules for professional services
Status: Enacted / Admin
Effective date: October 1, 2026
British Columbia confirmed on July 9 that the regulations implementing its PST expansion are complete. The 7% PST will apply to taxable accounting, architectural, engineering and geoscience, non-residential real estate and security services.
The new guidance addresses exemptions, disbursements, bundled services, out-of-province providers, self-assessment and transitional billing. Providers of affected services must file and remit PST electronically.
Who is affected: Professional firms serving B.C. clients, businesses purchasing services from outside B.C., and national firms allocating fees across provinces.
Client recommendations:
- Register for a B.C. PST account before taxable billings begin.
- Update engagement letters, invoices and accounting software.
- Review September invoices covering services performed after September 30.
- Identify B.C. clients who may have to self-assess PST on services acquired from outside the province.
2. Federal 2026 pre-budget consultation is now open
Status: Consultation / Proposed
Opening date: July 6, 2026
Submission deadline: September 8, 2026
Finance Canada formally launched consultations for the fall 2026 federal budget. Individuals, businesses and professional organizations may complete the online questionnaire or submit a formal letter or policy paper.
The consultation is not itself a tax change, but it is the main new federal fiscal-policy development this week. The stated themes include investment, competition, affordability, economic growth and workforce development.
Who is affected: Businesses, professional associations, employers, individuals and tax practitioners seeking changes to federal tax policy.
Client recommendations:
Consider submissions addressing:
- CRA service standards and processing delays.
- Simplification of trust and owner-manager reporting.
- Small-business investment incentives.
- GST/HST compliance complexity.
- Payroll and interprovincial business compliance.
3. Québec launches online solidarity tax credit claims
Status: Admin
Available from: July 9, 2026
Revenu Québec now allows individuals to submit, correct and track solidarity tax credit claims through My Account. Individuals receiving only the basic component may use the service to provide missing information and establish eligibility for additional components.
The credit supports eligible low- and middle-income residents, with the current benefit period running from July 2026 through June 2027 based on the individual’s circumstances on December 31, 2025.
Who is affected: Québec residents who received a notice of determination, omitted information, or are receiving only the basic solidarity tax credit amount.
Client recommendations:
- Review the notice of determination before filing a correction.
- Confirm housing and family information is complete.
- Retain the RL-31 slip or municipal tax information supporting the claim.
- Use My Account to track subsequent changes.
Itemized changes
B.C. accounting-services transitional rules
A September invoice does not automatically avoid PST. Where consideration is paid or becomes due before October 1, the treatment depends partly on when the services are provided.
For example, pre-October billing for services extending into December may require PST allocation to the post-September service period. Conversely, services performed in September but first billed on or after October 1 may be taxable because the amount became due after the effective date.
Out-of-province accounting firms
An accounting firm does not need to be physically located in B.C. for PST to apply. A B.C. purchaser may have to self-assess PST when taxable services are acquired from outside B.C. and the supplier does not collect it.
National businesses will need a reasonable allocation methodology where services relate partly to B.C. and partly to other jurisdictions.
Deadlines — next 60–90 days
| Date | Requirement |
|---|---|
| September 8, 2026 | Deadline for submissions to the federal pre-budget consultation. |
| September 15, 2026 | Third 2026 personal income-tax instalment deadline for individuals required to pay by instalments. |
| Before October 1, 2026 | Affected B.C. professional firms should complete PST registration, invoicing and systems changes. |
| October 1, 2026 | B.C. PST expansion to specified professional services becomes effective. |
Advisor’s recommendations
The primary client action this week is B.C. PST readiness. Professional firms should not wait until October to evaluate registration, billing dates, fee allocations, contracts and tax coding.
For Ontario clients, there is no separate material change to report from this week’s scan. The better communication approach is to highlight the B.C. development only where relevant and avoid presenting older Ontario or federal announcements as new.
