GST, HST & PST on Canadian invoices.

Canadian sales tax is a province-by-province patchwork: GST federally, HST in five provinces, PST separately in three, QST in Quebec. This guide explains which tax applies where, when to register, and what a valid invoice must show.

i.The four tax systems, briefly

GST (Goods and Services Tax) - 5% federal

The federal value-added tax. Applies across Canada, except where harmonised with provincial tax (HST provinces) or where a separate provincial tax replaces parts of it (Quebec's QST).

HST (Harmonised Sales Tax)

A single combined tax replacing GST and provincial tax in: Ontario (13%), New Brunswick (15%), Nova Scotia (15%), Newfoundland and Labrador (15%), Prince Edward Island (15%). Administered by the CRA. Simpler than separate GST + PST.

PST / RST (Provincial Sales Tax / Retail Sales Tax)

Charged on top of 5% GST in:

• British Columbia - 7% PST
• Saskatchewan - 6% PST
• Manitoba - 7% RST

Administered by the province separately from GST. You may need to register with both the CRA (for GST) and the provincial revenue authority (for PST/RST).

QST (Quebec Sales Tax) - 9.975%

Quebec runs its own sales tax administered by Revenu Québec. You charge 5% GST + 9.975% QST on most taxable supplies in Quebec. See our dedicated Quebec QST guide.

No provincial sales tax

Alberta, Yukon, Northwest Territories, and Nunavut have no provincial sales tax. Only 5% GST applies.

ii.Province-by-province rate summary

What you charge a customer depends on where they're located (place of supply rules), not where you are. Approximate combined rates:

• Alberta: 5% (GST only)
• British Columbia: 5% GST + 7% PST = 12% (charged separately on invoice)
• Manitoba: 5% GST + 7% RST = 12% (charged separately)
• New Brunswick: 15% HST (combined)
• Newfoundland and Labrador: 15% HST
• Nova Scotia: 15% HST
• Northwest Territories: 5% GST
• Nunavut: 5% GST
• Ontario: 13% HST
• Prince Edward Island: 15% HST
• Quebec: 5% GST + 9.975% QST = 14.975% (charged separately)
• Saskatchewan: 5% GST + 6% PST = 11% (charged separately)
• Yukon: 5% GST

iii.The Small Supplier threshold

You don't have to register for GST/HST as long as your worldwide taxable revenue stays below CAD $30,000 over four consecutive calendar quarters. This is the Small Supplier exemption.

Once you cross the threshold:

• You must register for GST/HST within 29 days.
• You start charging GST/HST from the first day you're no longer a Small Supplier.
• You can claim Input Tax Credits (ITCs) on your business expenses going forward.

You can also register voluntarily before crossing the threshold. Most consultants registering voluntarily do so because their clients are larger businesses who pay GST/HST as a normal cost and reclaim it; the consultant gets to claim ITCs on their own business expenses.

Different rules for PST/RST/QST: thresholds and registration rules vary by province. Most have no Small Supplier exemption equivalent - if you're in business in BC, you typically register for PST regardless of volume if you sell taxable goods or services.

iv.Place of supply - which province's tax do I charge?

If you're a service provider, you charge tax based on where the customer is located (the "place of supply"):

• Customer in Ontario → 13% HST
• Customer in British Columbia → 5% GST + 7% PST (you'd typically register for both)
• Customer in Alberta → 5% GST
• Customer outside Canada → zero-rated (no GST/HST), with appropriate documentation

For products shipped to a customer, place of supply is where the customer takes delivery. For services, generally where the customer is located. There are detailed rules for specific service types - consult the CRA's place of supply guidance if your case is unusual.

v.What a valid Canadian invoice must contain

For invoices over CAD $30, the CRA requires:

• Your business name (or legal name) and address
• Your GST/HST registration number (if you're a registrant)
• The date of the invoice
• The total amount paid or payable
• A statement that the total includes GST/HST, or a clear indication of the rate and amount

For invoices over CAD $150, additionally:

• The customer's name (or trading name)
• Brief description of the goods or services
• Terms of payment

For PST/RST/QST, additional fields may be required by the provincial authority - typically your PST registration number on the invoice for taxable supplies.

vi.Cross-border services to US clients

Services exported to non-residents (most commonly US clients) are generally zero-rated for GST/HST. Three conditions usually apply:

• The customer is not a Canadian resident
• The customer is not registered for GST/HST
• The service is not consumed in Canada

For a typical Canadian freelancer invoicing a US client in USD, you'd put 0% GST/HST on the invoice (or omit the tax line). Keep documentation that the client is non-resident.

vii.Reporting and filing

GST/HST filings happen via the CRA. Frequency depends on revenue:

• Annual: Default for new registrants and smaller businesses (under CAD $1.5M revenue).
• Quarterly: CAD $1.5M to $6M revenue.
• Monthly: Above CAD $6M revenue.

You can choose quarterly or monthly even if not required - some prefer it for cash flow reasons. PST/RST/QST filings are separate and run on their own provincial cycles.

viii.How VioBusiness handles Canadian tax

Set your business's GST/HST number in the Business Profile. On each invoice, set the appropriate tax rate based on the customer's province:

• Ontario customer: set 13% (HST)
• Atlantic provinces customer: set 15% (HST)
• Alberta customer: set 5% (GST)
• BC/SK/MB customers: set 5% (GST) as the invoice tax; add PST as a separate line item or in notes
• Quebec customer: set 5% (GST); QST as separate line item
• US/international: set 0%

The PDF prints with the tax line, totals, and your GST/HST number. CSV exports give you the per-invoice tax data you (or your bookkeeper) need for quarterly/annual filings.

Disclaimer: Canadian sales tax rules are complex once you start operating across provinces or selling specific service types (digital services, financial services, construction). For specific cases, consult a Canadian accountant or the CRA directly.

ix.Get VioBusiness

The clean, offline-first invoice app for Canadian small business. CAD $25.99 lifetime. More on the Canada page.