Taxes
GST, HST, PST and QST on Canadian Invoices
A practical overview of Canadian sales taxes for small businesses and freelancers, and how to show them correctly on an invoice.
By Billora Editorial Team · Published · Updated
Canada's sales taxes at a glance
Canada has a federal Goods and Services Tax (GST). Several provinces have combined their provincial tax with GST into a single Harmonized Sales Tax (HST). Other provinces charge a separate provincial sales tax — PST in British Columbia and Saskatchewan, RST in Manitoba — and Quebec charges QST. Alberta and the territories charge GST only.
Rates change from time to time and the rules for what is taxable, where the customer is located and whether you must register are detailed. Always confirm current rates with the Canada Revenue Agency and your provincial authority.
Do you need to register?
Most businesses must register for GST/HST once taxable revenues exceed the small supplier threshold over four consecutive calendar quarters. You may also register voluntarily, which lets you claim input tax credits. Once registered, your GST/HST number should appear on your invoices.
Showing tax on your invoice
- Show your GST/HST registration number (and QST number in Quebec)
- List each tax separately — for example GST 5% and PST 7%
- Indicate which items are taxable if some are exempt or zero-rated
- Charge tax on the discounted price
Our invoice generator includes editable presets for each province so you can add the right taxes in one click and adjust them as needed.