How to Invoice - Sales Tax Rates for GST, HST, PST in Canada

How to Invoice for Different Tax Situations

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When doing a Canadian invoice, how to invoice the customers who buy your products and services depends on your Canadian small business's tax situation.

Because of the different tax requirements of various provinces and the rules surrounding the Goods and Services Tax (GST) and Harmonized Sales Tax (HST), an invoice from a business that qualifies as a Small Supplier in Alberta has different requirements than an invoice from a business in Ontario that doesn't.

So here is a collection of invoice templates that provide models of the different invoices that different tax scenarios require. Just pick the one that matches the tax situation for your business.

Below the links to the different Canadian invoice templates, there's a list of which provinces and territories charge which taxes for your convenience.

Invoice Templates

Canadian Taxes: Which Province Charges Which Taxes & How Much?

Province or TerritoryTaxes ChargedNotes
BCGST 5% & PST 7 %As of April 1, 2013.
AlbertaGST 5% 
SaskatchewanGST 5% & PST 5% 
ManitobaGST 5% & PST 7% 
OntarioHST 13% 
QuebecGST 5% & QST 9.975%(Quebec Sales Tax)As of January 1, 2013, the QST will no longer be charged on GST.
New BrunswickHST 15%Increased from 13% to 15% July 1, 2016
Nova ScotiaHST 15% 
Newfoundland & LabradorHST 15%Increased from 13% to 15% July 1, 2016
Prince Edward IslandHST 15%Increased from 14% to 15% October 1, 2016
Northwest TerritoriesGST 5% 
NunavitGST 5% 
YukonGST 5% 

How to Invoice: Invoice Requirements

Generally, Canadian invoices need to inform customers of the price of the goods and/or services they are purchasing and the amount of tax they are paying on those goods and/or services.

If you are charging GST/HST on your goods and/or services, you need to follow the Canada Revenue Agency's requirements for what information has to be on your invoices.

These are explained in detail in both How to Invoice With HST and How to Invoice With GST and PST.

How to Invoice: Rules for Charging PST

In Saskatchewan, Manitoba and British Columbia, PST, like GST, is charged on the total selling price of the merchandise.

In Quebec, PST is charged based on the total of the selling price plus GST. For examples see How Do I Calculate GST/HST?

The Small Supplier Exception - Do You Even Have to Charge GST/HST/PST?

If your business revenues (before expenses) are $30,000 or less in the previous four calendar quarters you do not have to register for and charge GST/HST. However, you may still wish to do so in order to claim input tax credits (see the Canada Revenue Agency (CRA) Small Supplier Definition for more details).

If you do business in a province that charges GST and PST you may also qualify for a provincial small supplier exception. For example, in British Columbia you can qualify as a "Small Seller" if your gross revenues are less than $10,000 per year. However, it does not apply to rental accommodation, vehicle sales, etc.

Exempt and Zero-Rated Goods and Services

There are many GST/HST/PST exempt goods and services which you do not tax on invoices. To add to the complexity, in provinces that charge GST/PST some items are exempt from the GST but not from the PST, and vice-versa (if in doubt check the provincial sales tax information bulletins: Quebec, Manitoba, Saskatchewan, British Columbia).

Examples of GST/HST exempt goods and services include child-care services, music lessons and used residential housing.

There are also items which you do not tax on invoices but can claim input tax credits (zero-rated goods and services). For an explanation of exempt vs zero-rated goods see GST/HST Exempt and Zero-Rated Goods and Services in Canada.

Accounting Software & Invoices

Accounting software makes doing invoices easy. Accounting software designed for small businesses can not only be used as POS (Point of Sale) systems and print out invoices on the spot, but makes it easier to calculate and keep track of taxes, such as the GST/HST. See: The Best Accounting Software for Small Business.

See also:

7 Advantages of Using an iPad POS System 

7 Ways to Make Sure Customers & Clients Pay What They Owe 

How to Tell If You Have a Cash Flow Problem and What to Do About It