Educational guide
How to Invoice in Canada
Federal and provincial taxes combine differently by province—your invoice should reflect the correct program.
This page is for general education only. Tax law, e-invoicing rules, and invoice mandates vary by sector, threshold, and updates from authorities. Confirm requirements with a qualified accountant, lawyer, or government guidance for your situation.
Invoicing in Canada requires understanding the interplay between federal and provincial sales taxes, which vary by province and territory. The federal Goods and Services Tax (GST) is 5%, and most provinces add their own Provincial Sales Tax (PST) or combine it with GST into a Harmonized Sales Tax (HST) ranging from 13% to 15%. Quebec operates its own QST at 9.975%, administered separately by Revenu Québec. Businesses must register for GST/HST once annual taxable revenue exceeds $30,000.
Registered businesses must display their GST/HST number on all invoices so buyers can claim input tax credits (ITCs). The Canada Revenue Agency (CRA) has specific requirements for what constitutes a valid invoice depending on the transaction value — invoices over $150 need more detailed information, including the buyer's name and the terms of payment. Smaller transactions can use simplified invoices with fewer required fields.
Invoices are typically issued in Canadian dollars, with Interac e-Transfer and direct deposit being the most popular payment methods for small and medium businesses. While there is no federal e-invoicing mandate in Canada, CRA requires businesses to maintain complete records for at least six years from the end of the tax year. Net 30 payment terms are standard across most industries, though construction and government contracts may use different timelines. Bilingual invoicing in English and French is recommended when billing Quebec clients or federal government agencies, as it reflects professionalism and respects Canada's official language policies.
Invoice checklist: common fields in Canada
What buyers, auditors, and tax authorities often expect to see on a commercial invoice. “Required” reflects typical compliance expectations for registered businesses—not every sole trader scenario.
Seller Name & Address
Usually requiredLegal or operating name and address as registered with CRA. If using a trade name, ensure it matches the business registration to avoid payment delays.
Buyer Name & Address
Usually requiredRequired for invoices over $150 to support input tax credit claims. For invoices under $150, buyer identification is recommended but not strictly mandated by CRA.
Invoice Number
Usually requiredA unique sequential number for tracking and audit purposes. CRA expects consistent numbering to verify completeness during reviews and GST/HST audits.
Invoice Date
Usually requiredDetermines the reporting period for GST/HST returns. The date of supply should be included if it differs from the invoice date to ensure correct period allocation.
GST/HST Number
Usually requiredThe 9-digit Business Number plus RT program identifier (e.g., 123456789RT0001). Buyers verify this number on the CRA registry before claiming ITCs on their returns.
Tax Breakdown
Usually requiredShow GST/HST as a single combined rate in HST provinces, or list GST and PST/QST as separate line items with their respective rates and amounts in non-HST provinces.
Currency
Usually requiredCAD for domestic transactions. USD is common for cross-border deals but all amounts must be converted to CAD for GST/HST reporting using the Bank of Canada rate.
Payment Terms
Often optionalNet 30 is standard in most Canadian industries. Some sectors use net 15 or net 60. Include clear due dates and any early payment discount terms to reduce disputes.
Description of Goods or Services
Usually requiredA clear description of what was supplied is required for CRA compliance. Include sufficient detail for the buyer to match the invoice to the purchase order or contract.
Tax and regulatory themes in Canada
GST / HST
Federal GST is 5%. HST applies in ON (13%), NB, NL, NS (15%), and PEI (15%). Businesses above $30,000 annual revenue must register.
PST / QST
BC charges 7% PST, Saskatchewan 6% PST, Manitoba 7% RST. Quebec charges 9.975% QST alongside 5% GST. Each has separate registration requirements.
Zero-Rated and Exempt Supplies
Basic groceries, prescription drugs, and exports are zero-rated. Exempt supplies like financial services and residential rent don't allow ITC claims.
Popular payment methods in Canada
Methods commonly used for B2B and freelance payments. Availability depends on banks, platforms, and contract terms.
- Interac e-Transfer
- Direct deposit (bank transit + account number)
- Cheque
- Credit/debit cards
- PayPal
Business and cultural tips for Canada
- Always specify whether prices are before or after tax — Canadian customers expect to see GST/HST broken out clearly.
- Bilingual invoices (English and French) are appreciated when billing clients in Quebec or federal government agencies.
- Interac e-Transfer is the most common payment method for small business transactions across Canada.
- Include your GST/HST registration number even on small invoices — buyers check it before claiming input tax credits.
- For Quebec clients, register separately with Revenu Québec for QST if you make taxable supplies in the province.
- Canadian businesses expect invoices promptly after delivery. Delayed invoicing disrupts buyers' period-end closing and ITC claims.
- When working with large Canadian corporations, confirm whether they require a purchase order number on every invoice before submission.
- Offer Interac e-Transfer alongside traditional bank deposit — it is faster, widely adopted, and provides instant payment confirmation.
Invoicing in Canada: common questions
Invoicing guides for other countries
Prefer a product overview for this market? See Billed for Canada.
Start Invoicing in Canada
When your process is clear, tools help you stay consistent. Billed supports professional invoices, payment links, and records—use alongside advice from your local professional.
No credit card required. Cancel anytime.