GST/HST on Freelance Invoices: Rates, Rules, and What to Say to Clients

You just registered for GST/HST. Now what? You need to start adding tax to your invoices — but which rate, on which clients, and what do you say to existing clients who've never seen GST on your invoices before? This guide walks through all of it.

The first rule: don't charge until you're registered

Cannot add GST/HST until you have a registration number from CRA. Once your number arrives — usually within a few business days of applying online — you can start charging immediately.

Registration number looks like your 9-digit Business Number followed by RT 0001 (e.g. 123456789 RT 0001). This number goes on every invoice.

Which rate to charge — it's based on your client's location

The GST/HST rate on your invoice is determined by where your client is located, not where you are. This is the place of supply rule.

BC, Saskatchewan, Manitoba, and Quebec have their own provincial sales taxes (PST or QST) separate from GST. As a freelancer registered for GST only, you charge 5% GST — provincial tax rules in those provinces are generally the client's concern. If you have significant business activity there, consult a tax professional about whether PST/QST registration applies to you.

US and international clients — zero-rated exports

Services to clients outside Canada are generally zero-rated — charge 0% GST/HST. Note the service as a zero-rated export on your invoice.

Still report this revenue on your GST/HST return (Line 101), but tax amount is zero. Can still claim ITCs on expenses incurred to provide those services.

Keep documentation proving client is outside Canada — business address, contract, or correspondence. Without this, CRA could assess GST/HST retroactively if client location is disputed in an audit.

What to include on a GST-compliant invoice

Once registered, every invoice to a Canadian client must include:

• business name (legal or operating)
• GST/HST registration number (RT number)
• invoice date
• description of services provided
• subtotal before tax
• applicable GST/HST rate
• GST/HST amount as a separate line
• total amount owing (subtotal + tax)

A simple invoice to an Ontario client might look like:

Your client pays $2,260. You keep $2,000 and remit $260 to CRA at your next filing.

Telling existing clients you're now charging GST

This conversation doesn't have to be awkward.

For business clients — most freelance clients are businesses — GST/HST is not a cost to them. If they're registered, they claim your GST back as an input tax credit. It costs them nothing net. Lead with that.

A simple email or note on your next invoice works:

For individual consumers who can't claim ITCs, GST represents a real increase. Be straightforward — explain it's a legal requirement once you hit the registration threshold and give them a heads up before the first GST-inclusive invoice arrives.

What happens to the GST you collect

GST/HST you collect is not your income — it belongs to CRA from the moment you receive it. Most common mistake: treating it like extra revenue and spending it.

Set up a separate bank account for GST/HST. Every time a client pays you, move the tax portion into that account immediately. When filing arrives, the money is sitting there.

For most new freelancers, filing is annual (due June 15 for the previous year) or quarterly. CRA assigns filing period based on revenue at registration.

Input tax credits — the upside of being registered

Once registered, claim back GST/HST paid on legitimate business expenses. $65 in HST on software and office supplies reduces what you remit.

If input tax credits exceed GST collected in a period — slow quarter but bought equipment — you'll get a refund from CRA. One reason some freelancers choose to register before hitting $30,000.

This article is for informational purposes only and does not constitute tax advice. GST/HST rates and rules can change — always verify with the CRA or a qualified tax professional before filing.