Restaurant GST, PST and liquor tax
Restaurants in BC and Alberta charge 5% GST on most food and drink. In BC, liquor also carries 10% PST, worked out on the price before GST, and soda beverages carry 7% PST. Meals, coffee, tea, other non-alcoholic drinks and mandatory gratuities have no PST. Alberta has no provincial sales tax.
What to charge on food, soda and liquor
The general rules for the main things a restaurant sells. Your point-of-sale tax settings should match this, item by item.
| What you sell | GST | BC PST | Alberta |
|---|---|---|---|
| Meals and food | 5% | No PST | 5% GST only |
| Coffee, tea, juice and other non-alcoholic drinks | 5% | No PST, unless poured from a soda fountain or soda gun | 5% GST only |
| Soda beverages: soft drinks, sparkling juice, kombucha, sweetened sparkling water | 5% | 7% | 5% GST only |
| Liquor: beer, wine, cider, coolers, spirits, mixed drinks | 5% | 10%, on the price before GST | 5% GST only |
| Mandatory gratuity on the bill | Generally 5% | No PST | Generally 5% GST |
| Tip the guest chooses to leave | None | None | None |
Also in BC: no PST on corkage or opening fees for wine guests bring, or on gift cards when you sell them (PST applies to what they're spent on). Merchandise such as souvenir glasses carries 7% PST. A combo with a soda has its own rule for how much of the price the 7% applies to. Bundles, catering and keg leases have their own rules too.
How the 10% liquor PST is worked out
BC PST on liquor is 10%, and it's worked out on the price before GST. It also applies to chill charges and other extras included in the price of the liquor, but not to GST or to refundable bottle and can deposits.
If your menu prices already include tax, the province gives two factors so the PST still comes to 10% of the pre-GST price: 9.52% of a GST-included price, or 8.7% of a price that includes both GST and PST.
Either way, PST has to be shown as its own line on the bill or receipt.
A $10.00 glass of wine, priced before tax
Worked example from the Government of BC's guidance for food and beverage service providers. A meal on the same bill has GST only.
PST on what a restaurant buys
Every BC business pays PST on taxable things it buys for its own use, whether or not it's registered to collect PST. A few restaurant purchases are exempt.
Liquor for resale
No PST when you buy liquor to resell, or to cook with in food you sell.
- Give the supplier your PST number.
- If you've applied but don't have the number yet, use a Certificate of Exemption.
- Liquor taken from resale stock for business or personal use: self-assess PST on its cost.
Equipment and supplies you use
7% PST on taxable goods you use in the business, for example:
- Dishes, cutlery, glasses, pots and pans
- Freestanding coolers, fridges and ice machines
- Point-of-sale hardware, software, menus, linen and cleaning supplies
Exempt takeout supplies
No PST on supplies that go out with the food, such as:
- Takeout containers, lids and bags
- Disposable cutlery, napkins, straws and stir sticks
- Give the supplier your PST number or a Certificate of Exemption.
If a supplier doesn't charge PST on something taxable, you self-assess it on your next PST return. GST you pay on business purchases can generally be claimed back as input tax credits on your GST return.
Alberta: GST only
Alberta has no provincial sales tax, so Alberta restaurants charge 5% GST on food, soft drinks and liquor alike, and file one sales tax return: the GST return.
The rest works the same way as in BC: mandatory gratuities generally have GST, voluntary tips don't, and the GST paid on your purchases can generally be claimed back as input tax credits.
One tax on the bill
5% GST on taxable food and drink. No PST lines to set up in your point of sale.
Input tax credits
GST on rent, equipment, supplies and delivery-app fees can generally be claimed back, if you keep the receipts.
How often you file, and when it's due
GST goes to CRA. BC PST goes to the province, on its own return. They run on different schedules.
GST return
- CRA assigns a reporting period based on your yearly taxable sales: generally annual up to $1.5 million, quarterly up to $6 million and monthly above that.
- You can choose to file more often, for example while you are building out and expect refunds of input tax credits.
- Annual filers who owe $3,000 or more in net tax generally pay quarterly instalments the next year.
PST return
- New liquor sellers start on monthly PST returns.
- After six months: monthly if taxable sales are over $3,000 a month, monthly or quarterly between $1,001 and $3,000, and quarterly at $1,000 or less.
- Each return and payment is due by the last day of the month after the period ends.
- Filing and paying on time earns a commission of up to $198 per period.
Where restaurant sales tax usually goes wrong
Most of these start in the point-of-sale settings and only show up when the return is filed.
PST on the whole bill
Charging PST on meals and non-soda drinks, when it should only be on liquor, soda and other taxable items.
Liquor PST on the GST-included price
Working out the 10% after GST is added, which overcharges the guest and the return.
Missing the soda gun
Not charging 7% on every drink from a soda fountain or soda gun, including juice.
No GST on mandatory gratuities
Setting up the large-party gratuity like a voluntary tip, so the GST on it is never charged.
Unpaid PST on equipment
Buying equipment or supplies from a supplier that didn't charge PST, and not self-assessing it.
Booking the deposit, not the sale
Recording card or delivery-app deposits instead of full sales, so GST collected and fees paid don't show up properly.
GST filing comes with the full suite
We keep GST and BC PST in their own accounts, so the returns come straight from the books.
Business full suite
Monthly books by location, GST/HST filing, payroll with tips and year-end files.
- Monthly bookkeeping and bank reconciliation
- Payroll, with T4 and T4A slips
- GST/HST filing
- Year-end files prepared
Restaurant CFO
Sales, prime cost and profit against your own targets, a forecast of where you're heading, and a monthly planning meeting with a senior manager.
- Monthly analysis of sales, prime cost and profit
- Comparisons with your own targets
- A forecast of where this pace takes you
How pricing works
Pricing is explained on the business membership page. We confirm your price before any work starts.
Restaurant GST and PST, answered
Do restaurants charge GST on food in BC and Alberta?
Yes, generally. Restaurant meals and drinks are subject to 5% GST in both provinces. Some takeout items can be treated differently from meals eaten in, so it's worth checking your menu. Alberta restaurants charge GST only, because Alberta has no provincial sales tax.
What is the PST on liquor in a BC restaurant?
BC PST on liquor is 10%. That covers beer, wine, cider, coolers, spirits, mixed drinks and any drink with more than 1% alcohol. PST is worked out on the price before GST, so a $10.00 glass of wine has $1.00 PST and $0.50 GST, for a total of $11.50.
Is there PST on pop and soda in BC restaurants?
Yes. Soda beverages carry 7% PST. That includes soft drinks, sparkling juices, kombucha and sweetened sparkling water. Anything poured from a soda fountain or soda gun carries 7% PST too, even juice. Coffee, tea and other non-alcoholic drinks that aren't soda beverages have no PST.
Do I pay PST on liquor I buy to resell?
No. Liquor you buy to resell is exempt when you give your supplier your PST number, or a Certificate of Exemption if you've applied for a PST number but don't have it yet. If you later take liquor from your resale stock for business or personal use, you self-assess PST on its cost on your next return.
How often do restaurants file PST and GST in BC?
New liquor sellers in BC start on monthly PST returns. After six months, the period depends on monthly taxable sales. Each PST return is due by the last day of the month after the period ends. GST returns are generally annual, quarterly or monthly, depending on your yearly taxable sales.
Do you file GST and PST for restaurants?
GST/HST filing is part of the business full suite, with bookkeeping and payroll. If you're registered for BC PST, we track it separately in your books and can prepare the PST return too; we'll include it in your price when we confirm it after a free call. Prices are on the business membership page.
Sources, checked 4 Nov 2026. Rules have exceptions and can change. This page is general information, not legal or tax advice for your situation.
- Government of BC, Food and beverage service providers and retail liquor sellers (published 22 Apr 2026), gov.bc.ca. This page replaced Bulletin PST 119, Restaurants and Liquor Sellers, which is now web content: 10% PST on liquor on the price before GST, 9.52% and 8.7% factors, 7% on soda beverages and soda-fountain drinks, exempt food and drinks, mandatory gratuities, corkage, gift cards, liquor for resale, purchases for your own use, food service supplies, change in use.
- Government of BC, Reporting and paying PST (last updated 21 Sep 2026), gov.bc.ca: due dates, liquor-seller reporting periods, commission up to $198, electronic filing at $1.5 million; the planned PST on accounting and other professional services is paused.
- Government of BC, Register to collect PST (last updated 1 Oct 2026), gov.bc.ca.
- CRA, GST/HST calculator (and rates), canada.ca (as used by our GST/HST calculator, checked 21 Oct 2026): 5% GST in BC and Alberta, no PST in Alberta.
- CRA, Reporting period options, canada.ca: annual up to $1.5 million, quarterly up to $6 million, monthly above. CRA guidance on gratuities: mandatory service charges are subject to GST.
Let's check your sales tax setup
Book a free 15-minute call by video or phone. Tell us what you sell, whether you serve liquor, and how your point of sale charges tax today, and we'll explain what we'd do and what it would cost.
Which office?
Book a free 15-minute call15-minute calls every weekday at 10 am and 2 pm Pacific (11 am and 3 pm Mountain), except holidays.
Typical next slots, confirmed when you book:
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