Canada's tax system adds a layer of complexity that trips up many new freelancers: federal GST/HST, provincial PST (in some provinces), and the interplay between them. This guide explains when you need to register, what to put on your invoices, and how provincial rates affect your billing.
GST vs HST vs PST: what's the difference?
Canada has three types of sales tax that vary by province:
- GST (Goods and Services Tax): A federal tax of 5%, collected by the CRA. Applies in Alberta, British Columbia, Manitoba, Saskatchewan, and the territories.
- HST (Harmonised Sales Tax): A combined federal + provincial tax. Applies in Ontario (13%), New Brunswick (15%), Newfoundland and Labrador (15%), Nova Scotia (15%), and Prince Edward Island (15%). Collected by the CRA as a single amount.
- PST (Provincial Sales Tax): A separate provincial tax in BC (7%), Manitoba (7%), and Saskatchewan (6%). Collected separately from GST and administered by each province.
- QST (Quebec Sales Tax): Quebec has its own combined system — 5% GST + 9.975% QST = 14.975% total. Administered by Revenu Québec.
| Province | Tax Type | Rate |
|---|---|---|
| Alberta | GST only | 5% |
| British Columbia | GST + PST | 5% + 7% = 12% |
| Ontario | HST | 13% |
| Quebec | GST + QST | 5% + 9.975% = 14.975% |
| Nova Scotia | HST | 15% |
| New Brunswick | HST | 15% |
| Manitoba | GST + PST | 5% + 7% = 12% |
| Saskatchewan | GST + PST | 5% + 6% = 11% |
| PEI | HST | 15% |
| NL | HST | 15% |
| Yukon / NWT / Nunavut | GST only | 5% |
GST/HST registration: the $30,000 threshold
You must register for GST/HST if your total taxable revenues from all businesses exceed $30,000 in a single calendar quarter or in any four consecutive quarters. This threshold is much lower than most other countries.
Once registered, you receive a 9-digit Business Number (BN) from the CRA, with the letters "RT" and a 4-digit reference number appended (e.g. 123456789 RT 0001). This must appear on all your invoices.
New freelancers: Track your revenue from day one. Many Canadian freelancers hit the $30,000 threshold faster than expected, especially in higher-cost service areas. There are penalties for late registration.
What must appear on a GST/HST invoice
CRA invoice requirements vary with the total amount. For invoices $30 to $149.99:
- Your business name (or operating name)
- Invoice date
- Total amount paid or payable
- An indication of which items are taxable (and which are zero-rated or exempt)
For invoices $150 to $999.99: all of the above, plus:
- Your GST/HST registration number
- The tax rate(s) applied
- Either the amount of GST/HST charged, or a statement that GST/HST is included and the rate charged
For invoices $1,000 or more: all of the above, plus:
- Purchaser's name (or business name)
- Terms of payment
Business Number format
Your GST/HST registration appears as a 15-character Business Number: 9 digits + RT + 4 digits (e.g. 123456789 RT 0001). Print this in your invoice header or footer — your clients need it to claim input tax credits.
PST and QST invoicing
If you're operating in BC, Manitoba, or Saskatchewan, you may also need to register for PST separately with the provincial government. PST registration requirements and thresholds vary by province and business type — check the provincial revenue authority for your location.
In Quebec, you register with Revenu Québec for both GST and QST. Your invoice must show both registration numbers separately.
Small supplier exemption
Below the $30,000 threshold, you're a "small supplier" and don't need to register for or collect GST/HST. You don't charge tax, and you can't claim input tax credits on your business purchases. Your invoices are still professional documents, just without tax fields.
Record-keeping requirements
The CRA requires you to keep all records, including invoices and receipts, for 6 years from the end of the last tax year to which they relate. Digital records are fully acceptable.
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