GST/HST for Canadian Freelancers: Rates, Thresholds & Invoicing

Canadian tax is a patchwork of federal GST, provincial HST, and provincial sales taxes depending on where you do business. For freelancers, this can feel confusing — but it breaks down cleanly.

The $30,000 Threshold

If your total taxable revenue (before expenses) exceeds $30,000 in four consecutive calendar quarters, you must register for GST/HST. Below that, you're considered a "small supplier" and don't have to register.

A few notes:

• The $30,000 threshold applies to all your revenue combined — not per client
• Once you hit it, you have 29 days to register
• You can voluntarily register before hitting the threshold (this lets you claim input tax credits on expenses)

The Rates (2026)

The rate you charge depends on the "place of supply" — typically where your client is:

Province	Rate	Type
Alberta, Yukon, NWT, Nunavut	5%	GST only
British Columbia	12% (5% GST + 7% PST)	GST + PST
Saskatchewan	11% (5% GST + 6% PST)	GST + PST
Manitoba	13% RST (separate from GST)	GST + RST
Ontario	13%	HST
Nova Scotia, New Brunswick, PEI, Newfoundland	15%	HST
Quebec	5% GST + 9.975% QST	GST + QST

HST provinces (ON, NS, NB, PEI, NL): Charge the single HST rate. The CRA handles splitting with the province automatically.

GST + PST provinces (BC, SK, MB) and Quebec: You may need to register separately for the provincial tax and remit to the province.

What Goes on a GST/HST Invoice?

The CRA requires specific information on invoices when you charge GST/HST. For invoices over $30, you need:

1. Your business name
2. Your GST/HST registration number (9 digits + RT0001)
3. Invoice date
4. Invoice number
5. Client's name
6. Description of services
7. Total amount payable
8. Total GST/HST charged (or indicate that GST/HST is included, show the rate, and show the total)
9. Terms of payment

For invoices over $150, you also need the client's name/address and a brief description of services.

For invoices under $30, you just need: vendor name, date, total amount, and GST/HST amount (or statement that it's included).

Input Tax Credits (ITCs)

The biggest benefit of registering: you can claim back the GST/HST you pay on business expenses (software, equipment, office supplies, home office portions, etc.). This is the main reason many freelancers voluntarily register before hitting the threshold — especially if they have high expenses.

Keep all your receipts. For real this time.

Invoicing in CAD

Canadian freelancers should always invoice in Canadian dollars (CAD) unless you have a specific agreement otherwise. If you do bill in foreign currency, you still need to report the CAD equivalent for tax purposes.

Your invoices should show:

• Currency (CAD)
• Appropriate GST/HST rate based on client's province
• Your GST/HST number (if registered)
• Business number (BN) if you have one

Provincial Governing Law for Contracts

When writing contracts, specify your province's law:

• Ontario, BC, Alberta, etc. each have their own provincial courts
• Unlike the UK where English law is often chosen across the UK, Canadian contracts should specify the exact province

GFX Oficial's contract generator includes all 13 provinces and territories as governing law options when you select Canada.

Sole Proprietor vs. Corporation

Many Canadian freelancers start as sole proprietors (simplest, file on personal T1). When revenue hits ~$80-100k+, it's often worth incorporating for tax benefits (small business deduction ~9% on active income, limited liability).

Talk to an accountant — this is a "when you know, you know" milestone.

Summary for Canadian Freelancers

✅ Track revenue quarterly and register for GST/HST at $30k
✅ Charge the correct rate based on where your client is
✅ Include your GST/HST number on invoices over $30
✅ Keep receipts for input tax credits
✅ Specify provincial law in your contracts
✅ Invoice in CAD unless otherwise agreed

Generate a CAD-localized invoice with correct GST/HST rates using GFX Oficial's invoice generator — select Canada and choose your province's tax preset.