Free Canadian Invoice Generator — HST, GST & CAD

Canadian GST/HST Rates by Province

When Do You Need to Charge GST/HST?

If your business earns more than CA$30,000 in a calendar quarter or four consecutive quarters, you must register for GST/HST with the CRA. Once registered:

• Charge GST/HST on all taxable supplies
• Include your Business Number (BN) on all invoices
• File GST/HST returns (annually, quarterly, or monthly)
• Remit the net tax collected to the CRA

Below $30,000/year, registration is optional — you're considered a "small supplier" and are not required to charge GST/HST.

What Must a Canadian Invoice Include?

• Your business name and contact details
• Business Number (BN) — required if GST/HST registered
• Invoice date and number
• Description of goods/services provided
• Tax amount and rate (GST, HST, PST, or QST as applicable)
• Total amount due including taxes
• Payment terms and accepted payment methods

How to Invoice as a Canadian Freelancer or Sole Proprietor

You can invoice under your legal name or a registered business name — both are valid. If you're operating as Jane Smith doing business as "Smith Consulting," put your registered trade name on the invoice and include your legal name in the notes if your client needs it for their records.

The $30,000 threshold matters here. If your gross revenue from all your freelance work stays under CA$30,000 over any four consecutive calendar quarters, you're a "small supplier" and don't need to register for GST/HST. You simply don't add tax to your invoices. Once you cross that threshold — even by a single dollar — you must register with the CRA within 29 days and start collecting GST/HST from that point forward.

For payment details, the Notes field on your invoice is the right place to include your Interac e-Transfer email address or your bank details (institution number, transit number, account number). Most Canadian freelancers list both options. For payment terms, "Net 30" means payment is due 30 days after the invoice date. "Due on receipt" is common for smaller jobs or first-time clients — you can choose whichever works for your business relationship.

How to Invoice US Clients from Canada

You can invoice US clients in either USD or CAD — it's usually the client's preference. US companies often prefer USD invoices because it simplifies their bookkeeping. If you bill in CAD, note the exchange rate on the invoice date so there are no surprises when they pay.

Canadian GST/HST does not apply to exports of services to US clients. Under CRA rules, services supplied to non-residents are generally zero-rated, meaning you charge 0% GST/HST. Don't add Canadian tax to a US client's invoice — it's not owed, and adding it would mean you collect money you'd have to remit without the client benefiting from an input tax credit.

• Include your BN: If you're GST-registered, some US clients — particularly larger companies — will ask for your Business Number for their own compliance records. Add it to the invoice even if no tax is charged.
• Wise (formerly TransferWise): Gives you a US bank account number so clients can pay by ACH transfer as if you were a US business. Low exchange rate fees.
• Payoneer: Another popular option for Canadian freelancers working with US platforms or clients. Funds land in CAD after conversion.
• Wire transfer: Works for larger invoices (typically $500 USD or more) where the $15–$25 wire fee is proportionally small.

When you receive USD and convert it to CAD, the exchange rate on the conversion date sets your Canadian income for tax purposes. Keep records of the exchange rate used — your bank statement or Wise transaction history works fine.

Payment Terms on Canadian Invoices

Standard payment terms in Canada are Net 15 or Net 30. Net 15 means the invoice is due 15 calendar days after the invoice date. Net 30 is more common for ongoing client relationships and larger project invoices. Some agencies and government clients operate on Net 45 or Net 60, so confirm terms before you start a project.

• Net 15: Due within 15 days. Good for small, one-off jobs or clients with fast payment cycles.
• Net 30: The most common standard in Canada. Gives clients time to process invoices through their accounts payable system.
• Due on receipt: Payment expected immediately. Appropriate for deposits, retainers, or clients you haven't worked with before.
• 2/10 Net 30: A 2% discount if paid within 10 days, otherwise full amount due in 30. Useful if you want to encourage faster payment.

If a client pays late, you're entitled to charge interest on overdue amounts — provided your invoice or contract states this upfront. CRA allows suppliers to charge interest on outstanding balances; a typical rate is 1.5–2% per month (18–24% annually). State the rate clearly in your payment terms, for example: "Overdue invoices are subject to a 1.5% monthly interest charge."

Federal government contractors should know about the Prompt Payment for Construction Work Act and its provincial equivalents (Ontario's Construction Act, for example). These laws set maximum payment windows for construction-related invoices and create a formal adjudication process for disputes. For non-construction freelancers, these rules don't apply, but they signal a broader trend toward legislated payment timelines in Canada.

To add your payment terms in InvoFree, use the Payment Details / Notes field at the bottom of the form. Type your terms directly — for example: "Payment due within 30 days. Interac e-Transfer: you@email.ca. Late payments subject to 1.5% monthly interest." It appears on your PDF invoice exactly as written.