Canada GST/HST invoicing: a small business guide

Canada layers a federal Goods and Services Tax with province-specific rules on top, so the tax line on an invoice depends on where the customer is, not where the business is based.

One country, several different tax setups

• HST provinces (a single blended rate): Ontario 13%, Nova Scotia 14%, New Brunswick, Newfoundland and Labrador, and Prince Edward Island 15%.
• GST + separate provincial tax: British Columbia (5% GST + 7% PST), Saskatchewan (5% GST + 6% PST), Manitoba (5% GST + 7% RST), and Quebec (5% GST + 9.975% QST, administered separately by Revenu Québec rather than the CRA).
• GST only, no provincial tax: Alberta, Yukon, Northwest Territories, and Nunavut (5%).

It's the customer's location that sets the rate

Canada uses place-of-supply rules: the tax rate that applies is generally determined by where the customer is, not where the seller operates. A business in Alberta selling to a customer in Ontario typically needs to charge Ontario's 13% HST, not Alberta's 5% GST.

When you need to register

Registration for GST/HST becomes mandatory once worldwide taxable supplies exceed CA$30,000 in a single calendar quarter, or over four consecutive quarters. Below that, you're a "small supplier" — registration is optional, but so is the ability to claim input tax credits on your own expenses. Quebec's QST uses the same $30,000 threshold but is registered separately through Revenu Québec.

What the invoice needs — it depends on the amount

The CRA sets tiered documentation requirements based on the transaction total. A lot of guides online still quote the older $30/$150 thresholds — those were replaced by $100 and $500, effective April 20, 2021.

• Under $100: supplier name, transaction date, and total amount.
• $100 to $499.99: adds the supplier's GST/HST registration number and payment terms.
• $500 and over: adds the buyer's name, an itemized description of the goods or services, and the tax amount shown separately (or a clear statement that tax is included).

A safer habit regardless of transaction size: include the registration number and a description on every invoice. It removes any ambiguity for the customer's own input tax credit claim, and Canadian businesses are required to keep invoices and supporting records for at least six years. StashBill's compliance engine configures these field-by-amount rules automatically per country — see how it handles tax elsewhere on the Countries page.

This is general information, not tax advice. Provincial rates and CRA thresholds change — confirm current figures with the CRA or an accountant before relying on them.