Invoicing · Updated 2026-10-06

GST/HST Invoicing in Canada: Thresholds, Rates & Invoice Rules

Canada's sales tax system confuses almost every new freelancer — and the confusion is expensive. Miss the registration threshold and the CRA can make you pay uncollected tax out of your own pocket. This guide explains when you must register for GST/HST, what to charge in each province, and what your invoices must show.

GST vs HST vs PST vs QST: the basics

Canada layers federal and provincial sales taxes, and the mix depends on where your customer is:

• GST (Goods and Services Tax) — 5%. The federal tax, applying everywhere. In provinces without HST, you charge 5% GST and the province handles its own PST separately (BC, Saskatchewan, Manitoba).
• HST (Harmonized Sales Tax) — 13% or 15%. In participating provinces, the federal and provincial taxes are blended into one: 13% in Ontario, and 15% in Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
• QST (Quebec Sales Tax) — 9.975%. Quebec runs its own system: you charge 5% GST plus 9.975% QST, administered by Revenu Québec.

Which rate you charge depends on the customer's province (the "place of supply" rules), not yours. An Ontario freelancer billing a Nova Scotia client charges 15% HST, not 13%.

The $30,000 registration threshold

You must register for GST/HST once your worldwide taxable revenue exceeds $30,000 — and the way the CRA measures this trips people up:

• The test runs over four consecutive calendar quarters (Jan–Mar, Apr–Jun, and so on), not your fiscal year. It's a rolling window: every new quarter, you drop the oldest and add the newest.
• If you blow past $30,000 within a single quarter, you stop being a small supplier immediately — effective the day of the sale that crossed the line. You must charge GST/HST on that very sale.
• The threshold is measured on revenue from taxable supplies, not profit. A reseller with $35,000 in sales and $6,000 in profit is over the threshold.
• It applies the same to sole proprietors, freelancers, and corporations. Incorporation is irrelevant.

Below $30,000 you're a small supplier and registration is optional — but often worthwhile. Voluntary registration lets you claim input tax credits (recovering the GST/HST you pay on business expenses), and registered status reads as more credible to business clients, who reclaim the tax you charge them anyway.

The expensive mistake: failing to register on time. The CRA treats you as registered from the date you should have been — meaning you owe the GST/HST on sales you never collected, out of your own pocket, plus potential penalties and interest. Track your rolling revenue and register within 29 days of crossing the line.

Two important notes: you must be officially registered before you start charging GST/HST — charging it without a GST/HST number isn't allowed. And some suppliers must register from the first dollar regardless of the threshold (taxi and ride-share drivers, for example).

What must be on your GST/HST invoice?

The CRA requires your invoices to show:

• Your business name
• The invoice date
• The total amount payable
• Your GST/HST registration number (your Business Number with the RT0001 program identifier)
• A clear indication of the GST/HST charged — either as a separate line or a statement that it's included
• A description of the goods or services sufficient to identify them

In practice, a compliant invoice shows each line item, the subtotal, the GST/HST amount as its own line (at the correct rate for the customer's province), and the grand total. If you sell a mix of taxable and zero-rated or exempt supplies, identify which is which.

For Quebec sales, show GST and QST as separate lines with your QST registration number as well.

Worked example

A Toronto freelancer (Ontario, 13% HST) invoices a client $2,000 for consulting:

• Consulting services: $2,000.00
• HST at 13%: $260.00
• Total due: $2,260.00

The same freelancer billing a client in Halifax charges 15% HST instead:

• Consulting services: $2,000.00
• HST at 15%: $300.00
• Total due: $2,300.00

And billing a client in Vancouver (GST only): 5% GST = $100, total $2,100. (BC PST doesn't apply to most services, but check the rules for goods.)

Claiming input tax credits

Registration isn't just an obligation — it's a benefit. As a registrant, you claim input tax credits (ITCs) for the GST/HST you pay on business expenses: equipment, software subscriptions, professional fees, even a portion of home office costs. Many freelancers find registration pays for itself in the first year through ITCs alone, especially during setup when spending is high.

Keep every receipt and supplier invoice. To claim an ITC you need proper documentation showing the supplier's GST/HST number and the tax paid.

Filing and remitting

Once registered, you file GST/HST returns — annually, quarterly, or monthly depending on your revenue — reporting the tax you collected minus your ITCs, and remit the difference to the CRA. Missing filing deadlines when you owe a balance triggers penalties and interest, so diary your filing dates from day one.

Common GST/HST mistakes

Charging the wrong province's rate. The rate follows the customer, not you. Maintain a quick reference for 5% / 13% / 15% / QST.

Charging GST/HST before registering. You need your GST/HST account open first. Backdate nothing.

Ignoring the rolling threshold. The "four consecutive quarters" test catches growing freelancers by surprise. Review your trailing 12-month taxable revenue every quarter.

Not registering voluntarily when it would pay. If your clients are businesses and you're spending on setup, voluntary registration usually wins through ITCs and credibility.

Poor records. The CRA expects you to keep books and records — including all invoices issued and received — for six years.

The bottom line

Canadian GST/HST comes down to three habits: watch your rolling $30,000 threshold, charge the right rate for your customer's province, and put your registration number and the tax amount clearly on every invoice. Do those three things and you stay on the CRA's good side while recovering tax on your own spending through input tax credits. Our free invoice generator handles GST/HST line items, multi-province rates, and professional layouts — no signup, no watermark.

This guide is general information based on CRA's published rules, not professional tax advice. Tax rules change; confirm current requirements with the CRA or your accountant.