GST/HST Invoicing Requirements in Canada

GST invoice requirements in Canada set out what a registered sole proprietor must show on a sales invoice so that the customer, and the CRA, can see the tax that was charged. For most small businesses the rules are straightforward: identify your business and your GST/HST account, describe the sale, show the tax, and keep a copy. This guide explains what must be on an invoice, how HST invoice rules differ by province, and the records the CRA expects today.

Who has to charge GST/HST and issue an invoice

When you register for GST/HST, the CRA issues a Business Number (BN) with a GST/HST program account, usually identified by the letters RT. From that point, you generally must charge and collect GST/HST on taxable supplies and give the customer an invoice. Registration becomes mandatory once your revenue passes the small supplier threshold, and it can also be voluntary before that. Because thresholds and rates change, confirm the current figures on the CRA website. A sole proprietor registers under their own BN rather than a separate corporate number — see what a sole proprietorship is for the structure basics.

What must be on an invoice

The CRA sets out required information for GST/HST invoices. For a normal tax invoice, plan to include:

• your business name and any operating name you use
• your Business Number with the GST/HST account (the RT number)
• the invoice date and a unique invoice number
• the purchaser's name, and their GST/HST number where the rules require it
• a clear description of the goods or services, with quantity and price
• the rate and amount of GST/HST charged, or a statement that tax is included in the price
• the total amount payable and the payment terms

The CRA requires more detail once an invoice passes a set threshold, so check the current rule before you design a template. Practically, a clean invoice is the fastest way to avoid disputes with customers and to make bookkeeping easier — our sole proprietor invoicing guide covers numbering, terms, and follow-up.

Simple invoice versus full tax invoice

Not every sale needs the same level of detail. The CRA allows a less detailed, receipt-style invoice for small sales and expects fuller information on larger ones.

Confirm the current threshold and the exact list on the CRA's GST/HST pages, since the rules can change.

HST invoice rules across Canada

What you charge depends on where the supply is made and the place-of-supply rules. Ontario, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador use HST; Alberta and the territories use GST only; Quebec applies GST plus QST; and British Columbia, Saskatchewan, and Manitoba use GST plus PST. Rates are set by government and do change, so confirm the current rate for your province on the CRA website. An HST invoice follows the same core fields as a GST invoice — the difference is mainly the tax label and rate.

Records, receipts, and reporting

Keep copies of every invoice you issue and receive, plus supporting documents. The CRA expects records to be kept for the retention period it sets and to be available if it asks — see business records retention in Canada for how long, and how digital copies are treated. GST/HST collected is not your income; it is held in trust and reported separately from business revenue. You report business income on form T2125 with your T1 return, and file GST/HST returns through CRA My Business Account or a certified software package. Good habits matter here; our bookkeeping for sole proprietors guide covers a simple monthly routine.

Common invoicing mistakes

Most problems are avoidable:

1. Charging GST/HST before you are registered.
2. Leaving the RT number off invoices.
3. Failing to show the tax separately when required.
4. Using one document for both taxed and non-taxed sales without labeling them.
5. Losing copies because invoices were issued from a personal email or phone.

Accounting software can generate compliant invoices automatically and keep a searchable archive — see accounting software options. If your situation involves mixed supplies, real property, or cross-border sales, get advice from a qualified accountant. This article is general information, not tax advice.