Freelancer Invoice Template Canada: How to Invoice Clients with HST

What Should a Canadian Freelancer Invoice Include?

As a self-employed Canadian, your invoices are legal documents. They are also your primary record of income for your T2125. Getting them right matters both for getting paid and for CRA compliance.

A proper Canadian freelancer invoice must include:

• Your full name or business name
• Your business address (or at minimum your city and province)
• The date of the invoice
• A unique invoice number
• Your client's name and address
• A description of the services provided
• The amount charged before HST
• The HST amount (if you are registered)
• Your HST registration number (if you are registered)
• The total amount owing
• Payment terms and due date
• Payment instructions

If you are not registered for HST (your revenue is under $30,000), you do not charge HST and do not need an HST number on your invoice.

Do You Need to Charge HST on Your Invoices?

You must register for HST and charge it on your invoices once your taxable revenue exceeds $30,000 in a single calendar quarter or across four consecutive calendar quarters.

Until you cross that threshold, you are a small supplier. You do not collect HST and your invoices should not show an HST line.

Once registered, you must add HST to every invoice for taxable services. The rate depends on where your client is located:

• Ontario clients: 13% HST
• Nova Scotia, New Brunswick, Newfoundland, PEI: 15% HST
• Other provinces: 5% GST (and possibly provincial tax separately)

Most Canadian freelancers work primarily with Ontario clients and charge 13%.

How to Calculate HST on an Invoice

The calculation is straightforward.

If you charge $1,500 for a project and your client is in Ontario:

• Service amount: $1,500.00
• HST (13%): $195.00
• Total owing: $1,695.00

If your client is in Nova Scotia:

• Service amount: $1,500.00
• HST (15%): $225.00
• Total owing: $1,725.00

Always show the HST as a separate line item. Do not bury it in the total. CRA requires it to be clearly identified on the invoice.

What Your HST Registration Number Looks Like

Your HST registration number is your CRA Business Number followed by RT0001. It looks like this:

123456789 RT0001

You get this number when you register for a GST/HST account with CRA. Once registered, this number must appear on every invoice where you charge HST.

If you are not registered, do not put any HST number on your invoice. Charging HST without being registered is a serious CRA violation.

Invoice Numbering

Every invoice needs a unique number. This helps you track payments and is required for your bookkeeping records.

A simple system that works:

• INV-001, INV-002, INV-003
• Or by year: INV-2026-001, INV-2026-002

Never reuse invoice numbers. Never skip numbers. CRA can use your invoice sequence as part of an audit to verify all income was reported.

Payment Terms

Your invoice should clearly state when payment is due. Common terms for Canadian freelancers:

• Net 15 - payment due 15 days from invoice date
• Net 30 - payment due 30 days from invoice date
• Due on receipt - payment due immediately

Many freelancers add late payment terms such as 1.5% per month on overdue balances. This is legally enforceable in Ontario and most provinces if stated clearly on the invoice.

What Payment Methods to Accept

Your invoice should tell the client exactly how to pay. Common options:

• E-transfer to your business email
• Direct deposit with your banking information
• Cheque payable to your business name
• Online payment link (Stripe, PayPal, etc.)

E-transfer is the most common method for Canadian freelancers working with small and medium businesses.

Keeping Invoice Records for CRA

CRA requires you to keep copies of all invoices you issue for six years from the end of the tax year they relate to. Your invoices are your proof of income on your T2125.

Keep both the original invoice file and proof of payment (bank deposit, e-transfer confirmation) for each invoice. If CRA audits your income, you need both.

Common Invoice Mistakes Canadian Freelancers Make

Not including an HST number when registered. Once you are registered for HST, your registration number must appear on every invoice where HST is charged. Missing it is a compliance issue.

Charging HST before registering. You cannot charge HST until you have a registration number from CRA. If you collect HST without being registered, you still owe it to CRA but cannot legally have charged it.

Not separating HST from the service amount. Show HST as a distinct line item. Do not show only the total.

Using inconsistent invoice numbers. Sequential, unique invoice numbers are important for bookkeeping and audits.

Not keeping copies. Your invoice records are your income proof. Store them for six years.

How to Create Invoices as a Canadian Freelancer

Option 1 - Word or Google Docs template

Free but manual. You calculate HST yourself, track payments in a spreadsheet, and manage records manually. Works for very occasional invoicing.

Option 2 - PDF invoice generators

Free tools that produce a PDF. Still manual for HST calculation and record keeping.

Option 3 - Invoicing software

Tools like SnapBooks let you create professional invoices with HST auto-calculated based on your client's province, send them by email, track when they are viewed and paid, and generate a 5-sheet Excel export at year end that includes all your invoice income for your T2125.

What a Professional Canadian Freelancer Invoice Looks Like

A well-structured invoice includes these sections in order:

Your business details at the top:

Your name or business name, address, email, phone, and HST number if registered.

Invoice details:

Invoice number, invoice date, and due date.

Bill to:

Your client's name, company, and address.

Line items:

Each service or deliverable with a description, quantity, rate, and amount.

Subtotal, HST, and total:

Three separate lines showing the amount before tax, the HST amount, and the total owing.

Payment instructions:

How to pay and where to send payment.

Frequently Asked Questions

Do I need to charge HST if I am a freelancer in Canada?

You must charge HST once your taxable revenue exceeds $30,000 in a single quarter or across four consecutive quarters. Below that threshold you are a small supplier and do not charge HST. You can also register voluntarily before reaching the threshold.

What HST rate do I charge on my invoices?

The rate depends on where your client is located, not where you are. Ontario clients pay 13% HST. Nova Scotia, New Brunswick, Newfoundland, and PEI clients pay 15% HST. Clients in other provinces pay 5% GST, sometimes with a separate provincial tax.

Do I need my HST number on every invoice?

Once registered for HST, your registration number must appear on every invoice where you charge HST. If you are not registered, do not put an HST number on your invoice.

How long do I need to keep my invoices?

CRA requires you to keep all business records including invoices for six years from the end of the tax year they relate to. Keep both the invoice and proof of payment.

What invoice number system should I use?

Use a simple sequential system such as INV-001 or INV-2026-001. Never reuse or skip numbers. Your invoice sequence can be reviewed in a CRA audit to verify all income was reported.

Can I invoice in US dollars as a Canadian freelancer?

Yes. If you invoice a US client in USD, you report the income in CAD on your T2125 using the exchange rate on the date of the transaction. CRA accepts Bank of Canada exchange rates. You generally do not charge Canadian HST to US clients since the service is exported.

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