Free Invoice Generator for Canada

Canada has one of the more layered sales tax systems because federal and provincial taxes combine differently depending on where you are.

GST (Goods and Services Tax) is the 5% federal tax, it applies everywhere in Canada. HST (Harmonized Sales Tax) is a combined federal + provincial tax that replaces both GST and PST: it's 13% in Ontario and 15% in Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland & Labrador. PST (Provincial Sales Tax) is added on top of GST in provinces that didn't harmonise, 7% in British Columbia, 6% in Saskatchewan, and 7% RST in Manitoba.

Quebec uses QST (9.975%) plus GST, administered by Revenu Québec separately from CRA. Alberta, Yukon, Northwest Territories, and Nunavut charge GST only (5%), no PST.

In Invoicara, pick the right combined rate for the province you're billing in, for example 13% for Ontario, 15% for the Atlantic HST provinces, or 5% for Alberta. If you're a small supplier under the $30,000 threshold, simply leave tax off.

If your business earns more than CA $30,000 in worldwide taxable revenues over any four consecutive calendar quarters, you must register for GST / HST with the Canada Revenue Agency (CRA). Below that threshold, you're a "small supplier" and registration is optional.

Once registered, you charge GST / HST on your invoices and remit it to CRA on schedule. You also get to claim Input Tax Credits (ITCs), recovering the GST / HST you paid on business expenses.

Sole proprietors and freelancers under $30,000 typically skip GST / HST entirely. Above the threshold, registration is required.

The CRA's requirements for invoices of more than $30 (when you're GST / HST-registered) cover: your business or operating name; the date of the invoice; your Business Number (BN), including your GST / HST account number; the total amount charged; the GST / HST rate applied (or a clear statement that GST / HST is included); and the buyer's name plus a brief description of the goods or services.

For invoices of $30 or less, the requirements are slightly lighter, but it's good practice to include everything anyway. Invoicara's form includes every field you need.

As a sole proprietor or freelancer, your Social Insurance Number (SIN) is your default tax identifier, but the SIN should never appear on a customer invoice. Once you register a business with the CRA, you get a Business Number (BN), that's what goes on invoices, extended with your GST / HST account number if you're registered.

Below the $30,000 small-supplier threshold, you don't need a BN at all to invoice clients. Once you cross it, registering is mandatory and the BN appears on every invoice.