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Canada GST/HST Invoice Requirements

Canada is unusual in that the required contents of an invoice scale with its value. The CRA sets out three tiers, and what your customer needs in order to claim an input tax credit depends on which tier the sale falls into. Get it wrong and the customer cannot recover the tax, which is the kind of thing that gets an invoice sent back.

By Arshad Hossain · Published

The short version

  • The information a buyer needs scales with the sale: under $100, $100 to $499.99, and $500 or more.
  • The thresholds are $100 and $500 — they were raised from $30 and $150 on 20 April 2021.
  • Show your GST/HST registration number once the sale reaches $100.
  • The rate follows the place of supply, so a buyer in Ontario means HST even if you are in Alberta.

The three thresholds

The CRA publishes the input tax credit information requirements as a table with three columns. Suppliers have to provide this information; buyers need it to support a claim.

A widely repeated error is worth naming. Until 20 April 2021 the thresholds were $30 and $150, and a great deal of third-party writing about Canadian invoicing still quotes those figures. They are $100 and $500.

Information requiredUnder $100$100–$499.99$500 or more
Supplier's business or trading nameYesYesYes
Invoice date, or date the tax became payableYesYesYes
Total amount paid or payableYesYesYes
GST/HST charged, or a statement that the amount includes itNoYesYes
Status of each supply where taxable and exempt are mixedNoYesYes
Supplier's GST/HST registration numberNoYesYes
Buyer's name or trading nameNoNoYes
Brief description of the property or servicesNoNoYes
Terms of paymentNoNoYes

Which rate you charge

GST is 5% federally. Some provinces have harmonised their sales tax with it, so a single HST is charged instead at a higher combined rate. Others levy a separate provincial sales tax that sits alongside GST, and Quebec runs QST through Revenu Québec rather than the CRA.

The rate is determined by the place of supply, which generally means where the customer is rather than where you are. A consultant in Calgary billing a client in Halifax charges the Nova Scotia HST rate, not Alberta's 5%. Because provincial rates change, take the current figures from the CRA rather than from a table someone published two years ago.

The small supplier threshold

You generally must register for GST/HST once your worldwide taxable revenues exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters. Below that you are a small supplier and registration is optional.

Registering voluntarily below the threshold has a real upside: you can claim input tax credits on your own purchases. The tradeoff is that you must then charge tax to every customer, which matters if you sell to consumers who cannot recover it.

Showing tax on the invoice

Above $100 you must either show the GST/HST charged as its own amount, or state that the amount paid or payable for each taxable supply includes the tax at the applicable rate. Showing it separately is almost always the better choice — it removes ambiguity for a buyer reconciling a claim.

Where an invoice mixes taxable and exempt supplies, the status of each has to be clear from $100 upwards. Again this is per-line tax rather than a single rate applied to a subtotal.

Time limits your customer is working to

Most registrants have four years to claim an input tax credit, running to the due date of the return for the last reporting period ending within four years of the period in which the credit first became claimable. Certain large businesses and listed financial institutions have two years instead.

This matters to you because a customer who discovers a defective invoice inside that window will come back and ask you to reissue it. Getting the fields right the first time is cheaper than reconstructing a document from three years ago.

Canadian invoicing: common questions

What information must a Canadian invoice show?

It scales with value. Under $100 you need your business name, the date and the total. From $100 you add your GST/HST number and the tax charged. From $500 you also add the buyer's name, a description of what was supplied and the payment terms.

Do I need a GST/HST number on my invoice?

Once the sale reaches $100 the CRA requires your GST/HST registration number on the document. Below that it is not required. Without it your customer cannot support an input tax credit claim for the tax you charged.

What GST/HST rate do I charge an out-of-province client?

The rate follows the place of supply, which is generally where your customer is. A supplier in Alberta billing an Ontario client charges Ontario HST rather than the 5% federal GST alone. Check current provincial rates with the CRA.

When do I have to register for GST/HST in Canada?

Generally once your worldwide taxable revenues exceed $30,000 in one calendar quarter or across four consecutive quarters. Below that you are a small supplier and may register voluntarily, which lets you claim input tax credits on your own costs.

Are the Canadian invoice thresholds still $30 and $150?

No. They became $100 and $500 on 20 April 2021. A lot of third-party guidance still quotes the old figures, so check against the CRA page rather than a secondary source when the amount is near a boundary.

Frequently Asked Questions

Does Quebec work the same way?

GST rules are the same, but QST is administered by Revenu Québec rather than the CRA, and QST registration numbers are confirmed there.

Can I invoice in US dollars from Canada?

Yes. You still have to account for the GST/HST correctly in Canadian dollars, so record the exchange rate you used along with the invoice.

What if I charged the wrong provincial rate?

Issue a credit note cancelling the original and a corrected invoice with a new number, rather than editing the document you already sent.

Sources

  1. Input tax credits — information requirements — Canada Revenue Agency
  2. General Information for GST/HST Registrants (RC4022) — Canada Revenue Agency

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