Canadian Invoice Template — GST/HST, PST, QST

Canadian invoicing complexity comes from the provincial tax differences: GST in some provinces, HST in others, PST or QST on top, and Quebec's distinct rules for federally-registered suppliers. The generator handles every combination; the sections below walk through what shifts province by province.

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GST, HST, PST, QST — which one applies to your invoice?

Canada has the most provincial-tax complexity of any major English-speaking country. Five distinct tax regimes:

  • GST only (5%). Alberta, Yukon, Northwest Territories, Nunavut. Federal Goods and Services Tax; no provincial sales tax.

  • HST (varies, 13-15%). Ontario (13%), New Brunswick (15%), Nova Scotia (15%), Prince Edward Island (15%), Newfoundland and Labrador (15%). Harmonized Sales Tax combines GST and provincial sales tax into one.

  • GST + PST (combined). British Columbia (5% GST + 7% PST = 12%), Saskatchewan (5% + 6% = 11%), Manitoba (5% + 7% = 12%). Two separate taxes; PST registration is separate from GST registration.

  • GST + QST (combined). Quebec (5% GST + 9.975% QST). Quebec administers both. Registration with Revenu Québec.

Where you collect tax depends on where your customer is — not where you are. A BC-based business invoicing an Ontario customer charges 13% HST. A Quebec business invoicing an Alberta customer charges 5% GST. Cross-provincial sales tax is one of the most-audited areas in Canadian small-business tax.

GST/HST registration: when it's mandatory

Federal GST/HST registration is mandatory when your worldwide taxable revenue exceeds $30,000 over four consecutive calendar quarters. Once registered, you have 29 days to start charging GST/HST. Voluntary registration is allowed below the threshold.

Why most small businesses register voluntarily:

  • Claim input tax credits (ITCs) on business expenses. Without registration, the GST/HST on your business purchases is just a cost.

  • B2B customers prefer it. Registered customers claim back the GST/HST you charge them, so it's cost-neutral. Unregistered suppliers signal 'very small' to corporate procurement.

  • Quarterly or annual filing. Below $1.5M revenue you can file annually; over that, quarterly. Either way, the bookkeeping discipline pays off.

For the QST in Quebec, the registration threshold is also $30,000 in worldwide taxable supplies, but registration is separate from GST. Quebec businesses register both with one application but report through Revenu Québec.

Provincial PST: BC, Saskatchewan, Manitoba

PST is a separate tax from GST. Three things distinguish it:

  • Different registration. PST registration is provincial, separate from federal GST/HST. BC PST, Saskatchewan PST, and Manitoba RST (Retail Sales Tax) each have separate registration processes.

  • PST is generally not refundable. Unlike GST (which gives you input tax credits), PST you pay on business purchases is usually a cost. There are exceptions for resellers of taxable goods.

  • Service taxability varies wildly. Most services are exempt from PST in BC and Saskatchewan; some specific services (telecommunications, accommodations, legal services in some scenarios) are taxable. Manitoba RST taxes some services that BC PST doesn't. Verify before invoicing.

Quebec QST and the federally-registered supplier rules

Quebec's QST works similarly to HST in structure (charged on most goods and services at 9.975%) but is administered separately by Revenu Québec.

Key implications for invoicing into Quebec:

  • Federally-registered (GST) suppliers selling into Quebec must also register for QST if they exceed the threshold. Effectively two registrations for any business with material Quebec sales.

  • QST is shown separately on the invoice — both 5% GST and 9.975% QST as separate line items. Some Quebec invoices combine them for display purposes but the underlying calculation must show both.

  • French-language requirements. Bill 96 strengthens French-language requirements in commercial communications. Quebec invoices to consumers should be in French (or French alongside English). B2B is more flexible but French is courteous.

Payment terms: Canadian conventions

Canadian B2B payment terms are generally similar to US norms — Net 30 is default for most B2B work — but with some sector variation:

  • Federal and provincial government. Net 30 by policy; reality is closer to Net 45. Bureau of Industry Canada Prompt Payment Act applies to some federal contracts.

  • Construction. Provincial construction-lien legislation in most provinces creates 30-60 day payment cycles tied to substantial performance and holdback release (10-15%).

  • SMEs and individuals. Net 15-30 typical. Quebec consumers protected by the Consumer Protection Act on certain types of contracts.

Currency: CAD, USD, GBP, EUR

Canadian businesses dealing with US clients invoice frequently in USD. CRA rules:

  • GST/HST is calculated on the Canadian-dollar equivalent. Use the Bank of Canada exchange rate on the date of supply or a documented agreed rate.

  • FX gains and losses are taxable. A USD invoice paid 60 days later at a different exchange rate generates a gain or loss for tax purposes. Track in CAD for accounting.

  • Wise Business and TD/RBC USD accounts are common for Canadian freelancers with US clients.

Common Canadian invoice mistakes

  • Charging the wrong provincial tax rate. Where your customer is determines the rate. Ontario customer = 13% HST regardless of your home province.

  • Not registering for QST when selling into Quebec. Federally-registered businesses with Quebec sales above the threshold must also register for QST.

  • Forgetting to claim input tax credits. Once registered for GST/HST, you can claim ITCs on most business expenses. Not claiming them is leaving money with CRA.

  • Issuing French-only or English-only invoices into Quebec consumer accounts. Bill 96 strengthened French-language requirements; bilingual invoices are safest.

  • Mixing PST-taxable and PST-exempt items on one invoice in BC/SK/MB. Lines need to show PST treatment per item. Lumping causes audit findings.

Frequently asked questions

Do I charge GST or HST when invoicing across provinces?

You charge based on where the customer is. If you're in BC (a GST + PST province) and your customer is in Ontario (an HST province), you charge 13% HST. The customer's location, not yours, determines the rate. This is called 'place of supply' under GST/HST rules.

Do I need a GST/HST number to invoice in Canada?

Only if you're registered. Below the $30k worldwide-taxable-supplies threshold, registration is optional. Above it, registration is mandatory within 29 days. Most small businesses register voluntarily so they can claim input tax credits on business expenses.

How do I handle Quebec invoices if I'm based outside Quebec?

If your sales into Quebec exceed the QST registration threshold ($30k worldwide taxable supplies), you must register with Revenu Québec for QST. Federally-registered GST suppliers are typically required to also register for QST. The invoice shows GST (5%) and QST (9.975%) separately.

What's the difference between GST, HST, PST, and QST?

GST is federal (5%), charged everywhere. HST is a harmonized federal+provincial tax in five provinces (ON, NB, NS, PEI, NL) at 13-15%. PST is a provincial-only sales tax in BC/SK/MB, charged on top of GST. QST is Quebec's provincial sales tax (9.975%) charged on top of GST. Where your customer is determines which applies.