GST and HST on Invoices Explained

Guide • Canada • last updated October 2026

How to charge GST and HST on invoices in Canada: when to register, which rate to use by province, and how to show it correctly.

GST and HST trip up a lot of new Canadian businesses. This guide explains when you have to register, which rate to charge by province, how to show the tax on an invoice, and how input tax credits give some of it back. Use the sales tax calculator to get the numbers right.

When you must register for GST/HST

You generally must register once your worldwide taxable revenue passes the small-supplier threshold over four consecutive quarters. Below that you can register voluntarily. Registering means you charge GST/HST on your sales, file returns, and remit the tax you collect to the CRA, minus the tax you paid on business expenses.

Which rate applies by province

Charge based on the customer's province:

Alberta, Northwest Territories, Nunavut, Yukon: 5% GST.
Ontario: 13% HST. New Brunswick, Newfoundland and Labrador, PEI: 15% HST. Nova Scotia: 14% HST.
British Columbia, Saskatchewan, Manitoba: 5% GST plus provincial sales tax, charged separately.
Quebec: 5% GST plus 9.975% QST.

Confirm current rates with the CRA, since provinces adjust them (Nova Scotia dropped from 15% to 14% in 2025).

How to show tax on an invoice

Show the tax as its own line, not baked into the price, so the client sees exactly what they are paying and you have a clean record for your return. Include your GST/HST number, the tax rate, and the tax amount. For HST provinces one line is enough; for GST plus PST or QST, show each tax separately.

Input tax credits, in brief

When you are registered, you can claim input tax credits for the GST/HST you paid on business purchases, from software to supplies. You remit the difference between what you collected and what you paid. Keep every receipt, because the CRA can ask you to support a claim.

A worked example

You bill a Quebec client $1,000 for consulting. You add 5% GST ($50) and 9.975% QST ($99.75), for $1,149.75. You collected $50 of GST; if you paid $20 of GST on business expenses that period, you remit $30 to the CRA and the QST to Revenu Quebec.

Common mistakes to avoid

Not registering after passing the threshold, then owing back tax.
Charging GST but not the provincial portion where it applies.
Rolling tax into the price so it cannot be shown or reclaimed.

The small-supplier threshold, explained

You are considered a small supplier until your taxable revenue exceeds the threshold over four consecutive calendar quarters. Until then, registering is optional. Once you cross it, you must register and begin charging GST/HST, and there are specific timing rules for when collection starts, so track your running revenue carefully as you approach it. Many businesses register a little early to claim input tax credits and to look established to clients.

Place of supply: charge the client's rate, not yours

A common mistake is charging your own province's rate. The place-of-supply rules generally tie the rate to where the customer receives the goods or service. A Manitoba consultant billing an Ontario client usually charges 13% HST, not Manitoba's GST plus PST. For digital and remote services the rules can be nuanced, so confirm the specifics with the CRA when in doubt.

Filing and remitting

Registered businesses file a GST/HST return on a monthly, quarterly or annual schedule set by the CRA. On the return you report the tax you collected, subtract the input tax credits you are claiming, and remit the difference. File on time even if you owe nothing, since late filing can trigger penalties. Setting aside the tax you collect in a separate account makes remittance painless.

Zero-rated and exempt supplies

Not everything is taxed the same way. Basic groceries, most exports, and certain medical and financial services are either zero-rated (0% but you can still claim input tax credits) or exempt (no tax and no credits). Knowing which category your work falls into keeps your invoices and returns correct.

A quick checklist before you charge GST/HST

Confirm you are registered and your number is on the invoice.
Use the client's provincial rate, not your own.
Show the tax as its own line.
Track collected tax separately so remittance is easy.

Voluntary registration: when it pays off

Even below the small-supplier threshold, registering early can be worth it. Once registered you can claim input tax credits on the GST/HST you pay for software, equipment and other business costs, which for a startup with real expenses can outweigh the extra admin. It also signals to larger clients that you are an established business.

Common GST/HST filing mistakes

The usual errors are predictable and avoidable: forgetting to charge the provincial portion where it applies, mixing personal and business expenses when claiming credits, missing a filing deadline, and not keeping the receipts that support a claim. A simple habit of separating collected tax into its own account, and filing on time even at nil, prevents most of them.

Selling across provinces

As your client base spreads across Canada, you charge each client their own provincial rate under the place-of-supply rules, not a single blended rate. Software that applies the right rate by province removes the guesswork and the math errors, and keeps each invoice compliant wherever the client is.

Frequently asked questions

When do I have to start charging GST/HST in Canada?

You must register and start charging once your taxable revenue exceeds the small-supplier threshold over four consecutive calendar quarters. Below that, registering is optional. Confirm the current threshold and the exact timing rules with the CRA, since they determine when collection begins.

What GST/HST rate do I charge for each province?

It depends on the client's province: 5% GST in Alberta and the territories, 13% HST in Ontario, 14% in Nova Scotia, 15% in the other Atlantic provinces, GST plus a separate PST in BC, Saskatchewan and Manitoba, and GST plus QST in Quebec. Use the sales tax calculator to apply the correct rate every time.

Can I claim back the GST/HST I pay on business expenses?

Yes, if you are registered. Input tax credits let you recover the GST/HST you paid on eligible business purchases, and you remit only the difference between what you collected and what you paid. Keep every receipt, because the CRA can ask you to support a claim.

How do I show GST/HST on an invoice correctly?

Show it as its own line with the rate and the amount, not rolled into the price, and include your GST/HST registration number. For provinces with a separate PST or QST, show each tax on its own line so the client sees exactly what they are paying.