How to Invoice a Client in Canada

A complete guide to GST/HST-compliant invoicing

A Canadian invoice must show your legal or operating name, your 15-character Business Number with the RT program identifier, the invoice date, the buyer's name, a description of the supply, the total charged and the GST/HST collected. Apply 5% GST, HST of 13% in Ontario or 15% in the Atlantic provinces, or GST plus PST, RST or QST per place-of-supply rules. CRA registration is mandatory once taxable supplies pass $30,000 over four consecutive calendar quarters.

Invoicing in Canada requires compliance with local GST/HST regulations and specific formatting standards. Whether you are a freelancer, small business owner, or agency, this guide covers everything you need to create professional, legally compliant invoices in Canada using CAD (C$).

Legal Requirements for Canada Invoices

✓Register for a GST/HST account with the Canada Revenue Agency (CRA) if your worldwide taxable supplies exceed $30,000 over four consecutive calendar quarters. Display your 15-character Business Number (BN) with the RT program identifier on all invoices.
✓Determine whether to charge GST only (5%), HST (13% in Ontario, 15% in Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island), or GST plus provincial PST/RST/QST depending on the province of supply.
✓Issue invoices that include all CRA-required information: your legal name or operating name, BN/GST registration number, invoice date, buyer's name or trading name, description of goods or services, total amount charged, and the GST/HST collected or a statement that the amount includes GST/HST.
✓Provide bilingual invoice support (English and French) when dealing with federal government contracts or clients in bilingual designated regions, as required under the Official Languages Act.
✓Track and claim Input Tax Credits (ITCs) for GST/HST paid on business purchases. ITCs must be claimed within four years of the due date of the return in which they could first be claimed, and you must hold supporting documentation.
✓Apply the place of supply rules to determine which province's tax rate applies. For tangible goods, the rate is based on the delivery destination; for services, specific rules determine the province of supply based on the type of service.
✓Issue credit notes referencing the original invoice when adjusting or cancelling previously issued invoices. Credit notes must include your BN, the date, the reason for the adjustment, and the adjusted GST/HST amount.

Step-by-Step: Create an Invoice for Canada

Follow these steps to create a compliant Canada invoice with proper GST/HST handling.

Estimated time: About 10 minutes

1
Register for a GST/HST Account
Apply for a Business Number and GST/HST account through CRA's Business Registration Online service or by filing form RC1. You will receive a 15-character BN with the RT identifier (e.g., 123456789RT0001). If you are below the $30,000 small supplier threshold, registration is voluntary but allows you to claim ITCs.
2
Set Up Your Business Information
Enter your legal business name (or operating/trade name if registered), BN with RT program account number, business address, and contact information. This information must match your CRA records exactly.
3
Determine the Applicable Tax Rate by Province
Identify whether the supply is subject to 5% GST (Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, Yukon), HST (13% Ontario, 15% Atlantic provinces and PEI), or GST plus provincial sales tax (British Columbia 7% PST, Saskatchewan 6% PST, Manitoba 7% RST, Quebec 9.975% QST).
4
Add Client Details
Enter your client's legal name or trading name, address, and BN/GST registration number if applicable. For B2B invoices, having the buyer's registration number on file helps both parties with ITC claims and CRA audit trails.
5
Create Detailed Line Items
Add each product or service with a clear description, quantity, unit price, and the applicable tax rate. Separate zero-rated supplies (such as basic groceries, prescription drugs, and medical devices) and exempt supplies (such as most health and dental services, and residential rent) from taxable supplies.
6
Calculate GST/HST and Display Tax Breakdown
Calculate the applicable GST/HST on each taxable line item. Display the subtotal before tax, the GST/HST amount (or GST and PST/QST separately if applicable), and the total including tax. You may alternatively state that the total includes GST/HST and show the rate.
7
Set Payment Terms in CAD
Specify payment terms such as Net 30 and include the due date. Provide your banking details for electronic funds transfer (EFT), Interac e-Transfer, or other accepted payment methods. Canadian businesses commonly use 30-day payment terms.
8
File Your GST/HST Return
Report collected GST/HST and claim ITCs on your GST/HST return, which is filed annually, quarterly, or monthly depending on your revenue. Annual filers with revenue under $1.5 million file annually; those between $1.5 million and $6 million file quarterly; those above $6 million file monthly. Use CRA My Business Account or NETFILE to file electronically.

Tips for Invoicing in Canada

Take advantage of the Quick Method of accounting if you are a small business with taxable supplies of $400,000 or less. The Quick Method lets you remit a flat percentage of your GST/HST-included revenue instead of tracking ITCs on every purchase, significantly simplifying your bookkeeping.
Remember that the small supplier threshold of $30,000 is cumulative over four consecutive calendar quarters. Once you cross it, you must register within 29 days and begin charging GST/HST. Monitor your revenue closely as you approach the threshold.
In provinces with separate PST (British Columbia, Saskatchewan, Manitoba) or QST (Quebec), you must register separately with the provincial tax authority and show the provincial tax as a separate line on your invoice. HST-harmonized provinces simplify this into a single combined rate.
Keep all invoices, receipts, and supporting documents for at least six years from the end of the tax year to which they relate. CRA can audit your records at any time during this period, and failure to produce adequate documentation can result in denied ITC claims.
When invoicing non-resident clients for services performed in Canada or goods delivered outside Canada, review the zero-rating rules under Schedule VI of the Excise Tax Act. Exports of goods and certain services to non-residents may be zero-rated, meaning you charge 0% GST/HST but can still claim ITCs on related expenses.

Canada Invoicing FAQ

What is the difference between GST, HST, and PST?

GST (Goods and Services Tax) is a 5% federal tax that applies across all of Canada. HST (Harmonized Sales Tax) is a combined federal and provincial tax used in Ontario (13%), Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island (all 15%). PST (Provincial Sales Tax) is a separate provincial tax charged in British Columbia (7%), Saskatchewan (6%), and Manitoba (7% RST). Quebec charges its own QST at 9.975%. Alberta and the territories have no provincial sales tax, so only the 5% GST applies.

What is the small supplier threshold and what happens when I exceed it?

The small supplier threshold is $30,000 in worldwide taxable supplies over four consecutive calendar quarters (or in a single calendar quarter). If your revenue exceeds this threshold, you must register for a GST/HST account within 29 days and begin charging GST/HST on your taxable supplies from that point forward. Below the threshold, registration is voluntary. Note that taxi and ride-sharing operators must register regardless of revenue.

What are Input Tax Credits (ITCs) and how do I claim them?

ITCs allow you to recover the GST/HST you paid on purchases and expenses related to your commercial activities. To claim ITCs, you must be GST/HST-registered, hold valid supporting documentation (invoices or receipts showing the supplier's name, BN, date, amount of GST/HST paid, and description of the supply), and report the ITCs on your GST/HST return. ITCs must be claimed within four years of the due date of the return in which they could first have been claimed.

Do I need to provide bilingual invoices?

There is no general legal requirement to issue bilingual invoices for private-sector transactions. However, if you do business with the federal government or its agencies, invoices and related documents must be available in both English and French under the Official Languages Act. In Quebec, the Charter of the French Language requires that invoices be available in French, though they may also include English.

How do I invoice clients in another province with a different tax rate?

The place of supply rules determine which province's tax rate applies. For tangible goods, the tax rate is based on the province where the goods are delivered. For services, the rules depend on the type of service: for example, services related to real property use the rate of the province where the property is located, while other services generally use the rate of the province where the recipient is located. Apply the correct GST/HST or GST plus PST/QST based on the determined province of supply.