How to Invoice in Canada
Guide • Canada • last updated October 2026
A step-by-step guide to invoicing in Canada: what to include, GST/HST/QST, payment terms, and how to get paid faster. With a free template.
Invoicing in Canada is straightforward once you know what belongs on the document and how sales tax works in your province. This guide walks through creating a compliant invoice, charging the right tax, setting terms that get you paid, and sending it so the money actually arrives. You can do every step for free with the FacilInvoice generator.
What a Canadian invoice must include
A professional invoice is also a legal record, so it needs a clear set of details. At a minimum, include your business name and contact information, your GST/HST registration number if you are registered, the client's name and address, a unique invoice number, the invoice date, a line-item description of what you sold, the tax applied, and the total in Canadian dollars.
- Your business name, address and, if registered, your Business Number (BN) with the GST/HST account suffix.
- The client's full name and billing address.
- A sequential invoice number and the date of issue.
- A description of goods or services, with quantities and unit prices.
- The subtotal, the tax as its own line, and the grand total in CAD.
Use the free invoice template generator to fill these in without a spreadsheet.
Charging GST, HST, QST or PST
The sales tax you charge depends on where your customer is, not where you are. Alberta and the territories charge 5% GST only. Ontario and the Atlantic provinces charge HST, which ranges from 13% in Ontario to 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island, with Nova Scotia at 14%. British Columbia, Saskatchewan and Manitoba charge the 5% GST plus a separate provincial sales tax. Quebec charges 5% GST plus 9.975% QST.
You generally must register for GST/HST once your revenue passes the small-supplier threshold. Before that you can register voluntarily, which lets you claim input tax credits on business purchases. Work out the exact amounts with the Canadian sales tax calculator.
Setting payment terms
Clear terms are the single biggest lever on how fast you get paid. Net 30 is the common default, but Net 15 or due on receipt move money sooner, and stating a late fee gives clients a reason not to drift. Put the due date and any late fee right on the invoice so there is no ambiguity.
Not sure which to use? See invoice payment terms explained, and set the exact due date with the due date calculator.
Sending the invoice and getting paid
Send the invoice as a PDF or, better, through software that lets the client pay online. Online payment buttons shorten the gap between sending and getting paid, and they remove the friction of a bank transfer. Keep a copy of every invoice for your records, since the CRA expects you to retain them.
A worked example
Say you are a designer in Ontario billing a client $2,000 for a project. You add 13% HST ($260), for a total of $2,260. You set Net 15 terms with a 2% monthly late fee, and send it with an online payment link. The client pays within the window, and your records show the $260 of HST you will remit to the CRA.
Common mistakes to avoid
- Forgetting your GST/HST number on the invoice once you are registered.
- Charging your own province's tax instead of the client's.
- Vague line items that invite questions and delay payment.
- No due date or late fee, which lets invoices slip.
How to send an invoice that gets opened and paid
Creating the invoice is half the job; the other half is delivery. Email it as a PDF with a short, friendly message that restates the amount and the due date, or better, send it through software with a pay-now link so the client can settle it in one click. Put the invoice number in the subject line so it is easy to find later, and copy anyone in accounts payable if the client is a larger business. The faster and easier you make paying, the sooner the money arrives.
Keeping records for the CRA
The Canada Revenue Agency expects you to keep your invoices and supporting records, generally for six years from the end of the tax year they relate to. That includes the invoices you send, the receipts for expenses you claim, and the GST/HST you collected and paid. Cloud invoicing keeps all of this in one place and makes filing far less stressful. If you are ever reviewed, orderly records are your best defence.
Invoicing international clients from Canada
When you bill a client outside Canada, the sales tax rules change: many exports of goods and services are zero-rated, meaning you charge 0% GST/HST but can still claim input tax credits. State the amount in the agreed currency, and if you invoice in a foreign currency, note the exchange handling so there is no confusion. Confirm the specific rules for your situation with the CRA, since they depend on what you sell and to whom.
A quick pre-send checklist
- Business and client details correct, including your GST/HST number.
- Unique invoice number and today's date.
- Clear line items, correct provincial tax, total in CAD.
- Due date and any late fee stated.
- Payment method or pay-now link included.
Run through that list every time and you will rarely see a dispute or a delay.
Choosing how to get paid
The payment methods you accept shape how fast you are paid. Bank transfer and e-transfer are cheap and familiar in Canada, cards are instant and expected by many clients, and online payment links turn an invoice into a one-click transaction. Offer at least two options so a client never has an excuse to wait, and put the instructions or the link right on the invoice.
Fixing a mistake on an invoice
If you spot an error after sending, do not quietly edit the original. For an overcharge or a cancelled item, issue a credit note that references the invoice; for an undercharge, send a new invoice for the difference. This keeps your numbering clean and your records defensible, which matters if the client or the CRA ever looks back.
Invoicing as you grow
A spreadsheet works for your first few clients, but it stops scaling quickly. Recurring billing, saved clients, automatic reminders and stored payment methods remove the repetitive work so you can focus on the job. The point of good invoicing software is that the admin disappears and the cash still arrives on time.
Frequently asked questions
What information is legally required on a Canadian invoice?
A compliant invoice needs your business name and contact details, the client's name and address, a unique invoice number, the date, an itemized list of what you sold, the amount, and the total in Canadian dollars. If you are registered for GST/HST you must also show your Business Number. Showing the tax as its own line keeps you compliant and lets the client claim their own input tax credits.
Do I need a GST/HST number to send an invoice in Canada?
No, you can send invoices without one while you are a small supplier below the registration threshold. Once your revenue passes that threshold you must register, charge GST/HST, and show your number on every invoice. Many businesses register voluntarily earlier so they can claim input tax credits on their expenses.
How do I invoice a client in another province?
Charge the sales tax of the client's province, not your own, under the place-of-supply rules. For example, a Manitoba business billing an Ontario client usually charges 13% HST. A tool like the sales tax calculator applies the right rate automatically so you do not have to track all thirteen.
Can I invoice as a sole proprietor in Canada?
Yes. As a sole proprietor you can invoice under your own name or a registered business name, and you report the income on your personal tax return. Keep every invoice and expense receipt, and set aside money for income tax and CPP since nothing is withheld for you.