April 23, 2026

What Is The Tax On Restaurant Food In BC?

Tax On Restaurant Food In BC

One of life’s simple pleasures is dining out. Whether it is spending time with your family at your favorite restaurant, catching up with a friend at a new café, or enjoying a special occasion with a fine-dining experience. But if you live in British Columbia (BC), you may have looked at your restaurant bill and wondered – what is the tax on restaurant food in BC?

It is important to understand restaurant taxes so that you can plan your monthly budget better and avoid surprises. In this informative guide by Taxccount Canada, you’ll get to know the tax structure in BC, what taxes apply to food, drinks, and alcohol, and key differences are also highlighted.

Basics of Restaurant Taxes in British Columbia

Unlike some provinces that have a combined tax system (like HST), British Columbia uses a separate tax system. It includes –

  • Goods and Service Tax (GST) – federal tax
  • Provincial Sales Tax (PST) – provincial tax

So, when you eat out in any restaurant in BC, the type of tax applied depends on what you order.

Understand BC Tax Rules

☎️ Get Help

GST on Restaurant Food in BC

The Goods and Service Tax (GST) is a federal tax that is applied all across Canada.

Rate: 5%

  • It applies to most restaurant food and beverages

This means when you order at a restaurant in BC, you will most likely have to pay 5% GST on your bill.

Is There a PST on Restaurant Food?

Here’s what you need to know –

In British Columbia, Prepared food from restaurants is generally exempt from PST.

This means –

  • No PST in most restaurants means
  • Only GST (which is 5%) is applicable in most cases

The situation is different in other provinces like Ontario, where a combined HST is charged. To get in-depth information about restaurant tax in your province, get in touch with our tax experts at Taxccount Canada.

When PST May Apply in Restaurants

As mentioned above, most restaurant food is PST-exempt, but there are some exceptions where additional taxes may apply.

Alcoholic Beverages

Alcoholic drinks are charged differently in BC.

  • GST is 5%
  • PST (Liquor tax) is up to 10%

Alcohol is considered a separate category and is subject to higher provincial taxes. So, if you order beer, wine, or cocktails in any restaurant in BC, your total tax will be higher than if you just order food.

Certain Beverages and Items

Some non-alcoholic beverages also have PST on them, depending upon their classification, like –

  • Carbonated beverages (in some cases)
  • Specialty drinks

However, most standard restaurant meals and basic beverages available are PST-exempt.

How Is the Restaurant Tax Calculated in BC?

Let’s understand this with a simple example.

Example 1 – You Order Only Food

  • Meal cost – $50
  • GST (5%) – $2.50
  • PST – %0

Total bill = $52.50

Example 2 – You Order Both Food and Alcohol

  • Food cost – $40
  • Alcohol cost – $20

Taxes applicable

  • GST (5% on total) – $3.00
  • PST (10% on alcohol) – $2.00

Total bill = $65.00

Why Is Restaurant Food PST-Exempt?

The idea behind restaurant food being PST-exempt is that the government wants to make essential consumption more affordable. Basic groceries are also tax-free under PST, and restaurant meals also fall in the same category in most cases.

This policy helps to reduce the tax burden on everyday living expenses on BC residents.

The Difference Between BC and Other Provinces

There is a difference between how restaurant taxes are applied in BC and other provinces. Understanding this difference is important.

British Columbia

  • GST is 5%
  • PST is usually 0% on restaurant food
  • Separate taxes

Alberta

  • Only GST, which is 5%

Ontario

  • HST, which is 13% on most restaurant meals

As seen, BC is most favorable when it comes to taxes on restaurant food as compared to other provinces with higher combined tax rates.

Are Tips Taxed in BC Restaurants?

This is a common question that people want to know.

  • Voluntary tips are not subject to GST/ PST
  • Mandatory service charges – These may be taxable

So, if you eat out at a restaurant in BC and tip voluntarily, then you are not paying tax on that amount.

What About Takeout and Delivery?

The same tax rules apply to –

  • Dine-in meals
  • Take-out orders
  • Food delivery

This means 5% GST is applicable, and PST is not applied to food. However, keep in mind that delivery fees or service charges may be taxed differently, based on how they are structured.

Common Misunderstandings About BC Restaurant Tax

Some of the most common misconceptions regarding the restaurant food tax in BC are –

  • Restaurant food is taxed at 12%
  • This misconception needs to go. BC doesn’t use a 12% HST system anymore. You will be charged just 5% GST on restaurant food in BC.
  • PST applies to all restaurant meals
  • No, most prepared food is PST-exempt in BC.
  • All drinks are taxed the same
  • This is not true. Alcohol is taxed more heavily than regular food or beverages in BC.

What Happens If a Restaurant Charges Incorrect Tax?

Sometimes a restaurant may accidentally apply incorrect tax rates due to system errors. If you notice –

  • Higher than expected tax
  • PST is charged on regular food

You can get in touch with the manager at the restaurant and ask the restaurant for clarification. The restaurant will most likely provide you with a corrected bill.

How Does This Impact Your Budget?

Understanding restaurant food tax in BC helps –

  • Estimate your total restaurant bill more accurately
  • Plan your expenses better
  • Avoid any ambiguity when dining out

For example, a $100 meal in BC comes out to be $105. But the same meal comes out to be $113 in Ontario.

This difference can add up over time, especially if you like to dine out frequently. To understand the restaurant food tax better, you can get in touch with Taxccount Canada. The team can help you –

  • Understand provincial tax rules across Canada
  • Help individuals manage tax planning in an efficient way
  • Assist restaurant owners with proper tax setup
  • Ensure accurate tax compliance

If you’re unsure of how taxes are applicable in your situation, our team of professionals is there to help you.

Ensure Proper Tax Compliance

☎️ Get Help

This is general information only and not professional advice. Consult a professional before acting.