Canada's tax system is more complex than most freelancers expect. Whether you charge HST, GST+PST, or GST+QST depends entirely on your province — and getting it wrong means your client can't claim input tax credits. Here's the complete guide to Canadian invoice tax rates by province, what CRA requires on your invoice, and how to generate the right format free in your browser.
HST vs GST vs PST vs QST — What's the Difference?
Canada has a federal goods and services tax (GST) of 5%. Most provinces add their own provincial tax on top:
| Tax type | What it is |
|---|---|
| HST | Harmonized Sales Tax — a merged federal+provincial tax collected as one amount |
| GST + PST | Federal GST (5%) + separate Provincial Sales Tax, collected independently |
| GST + QST | Quebec's system — federal GST (5%) + Quebec Sales Tax (9.975%) |
| GST only | Alberta and some territories — federal GST with no provincial component |
Canadian Sales Tax Rates by Province (2024)
| Province / Territory | Tax type | Rate | Notes |
|---|---|---|---|
| Ontario | HST | 13% | Combined federal+provincial |
| British Columbia | GST + PST | 5% + 7% = 12% | PST collected separately |
| Quebec | GST + QST | 5% + 9.975% = 14.975% | Need both BN and QST number |
| Alberta | GST | 5% | No provincial sales tax |
| Nova Scotia | HST | 15% | Highest HST rate |
| New Brunswick | HST | 15% | |
| Newfoundland & Labrador | HST | 15% | |
| Prince Edward Island | HST | 15% | |
| Manitoba | GST + RST | 5% + 7% = 12% | RST = Retail Sales Tax |
| Saskatchewan | GST + PST | 5% + 6% = 11% | |
| Yukon | GST | 5% | No territorial sales tax |
| Northwest Territories | GST | 5% | No territorial sales tax |
| Nunavut | GST | 5% | No territorial sales tax |
The tax rate on your invoice is determined by the province where your customer is located (the supply is "made" where the service is delivered or where the goods are shipped). If you're in Ontario billing a BC client, you generally charge 12% (BC rate), not 13% (Ontario rate) — though there are exceptions. Consult a CRA publication or accountant for complex cross-provincial billing.
What CRA Requires on a Canadian Invoice
For an invoice to be a valid GST/HST invoice that your client can use to claim input tax credits (ITCs), the CRA requires:
For invoices under $30:
- Your business name
- Invoice date
- Total amount paid or payable
- An indication that the total includes GST/HST
For invoices $30–$149.99:
All of the above, plus:
- Your Business Number (BN) — the 9-digit number followed by "RT" (e.g., 123456789 RT0001)
- Tax rate used, or the GST/HST amount
For invoices $150 and over:
All of the above, plus:
- Buyer's name or trading name
- A description of the goods or services sufficient to identify them
- Terms of payment (if different from immediately due)
How to Generate a Canadian HST Invoice Free
The Invoice Generator has a dedicated Canada mode that automatically fills the correct tax rate for each province:
- Open the invoice generator and click the Canada flag
- In the Sender section, select your province from the dropdown — the tax rate and label fill automatically
- Enter your Business Number (BN) in the tax ID field
- If you're in Quebec, a separate QST Number field appears automatically
- Fill in your client's name and address
- Add your line items (description, quantity, rate)
- Verify the tax label and rate shown below the subtotal
- Add payment terms and payment details (bank transfer, e-transfer, etc.)
- Download the PDF
Province auto-fill examples:
- Select Ontario → HST 13% fills automatically, label shows "HST"
- Select Quebec → GST 5% + QST 9.975% = 14.975%, separate QST number field appears
- Select Alberta → GST 5%, no provincial tax
- Select British Columbia → GST+PST 12%
GST/HST Registration Threshold
You must register for GST/HST when your total sales exceed $30,000 in a single calendar quarter or in four consecutive quarters. Once registered:
- You must charge and remit GST/HST on taxable supplies
- You can claim input tax credits for the GST/HST you paid on business expenses
- You must include your BN on all invoices
Below the threshold, registration is voluntary. If you're not registered, don't charge GST/HST — issue a regular invoice showing only your price.
Common Canadian Invoicing Mistakes
1. Using the wrong province's rate
Always use the rate for the province where your client is located (for most services), not your own province. Charging Ontario HST to an Alberta client is incorrect.
2. Missing the Business Number (BN)
Your BN is required on invoices over $30 for the client to claim ITCs. Without it, the invoice is not a valid GST/HST invoice even if the tax amount is correct.
3. Charging HST when not registered
Never charge GST/HST if you haven't registered. Even if you collect it, you're not legally allowed to and must remit it anyway.
4. Quebec: forgetting the QST number
Quebec has a separate QST number (different from your BN). Both must appear on invoices to Quebec clients — your BN for the federal GST portion and your QST number for the QST portion.
5. Not separating GST and QST in Quebec
Quebec invoices should show GST and QST as separate lines (not combined), since clients file them separately on their returns.
Related Tools
- Invoice Generator — Canadian HST/GST invoice PDF by province, BN and QST number fields, no account
- eSign PDF — digitally sign your invoice before sending to the client
- Compress PDF — reduce invoice PDF size before emailing
- Merge PDF — combine invoice with a contract or statement of work
Generate Canadian HST invoices free — correct rate by province, BN field, no account: Invoice Generator
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