Operations
How to Invoice as a Sole Proprietor in Canada
Learn how to invoice as a sole proprietor in Canada today — practical guidance on required fields, GST/HST details, templates, payment terms, and recordkeeping.
Learning how to invoice as a sole proprietor in Canada is simpler than most new owners expect. You do not need a government form, a licence, or expensive software — you create a clear document that identifies you, your client, what you sold, what it costs, and when payment is due, then you send it and record it in your books. Because a sole proprietorship is not a separate legal entity, the invoice is issued in your personal legal name, with your registered or operating name shown alongside it.
What every Canadian sole proprietor invoice should include
Canada does not prescribe a single mandatory invoice format for everyday billing, but a professional invoice should let a client pay without having to email you questions. At a minimum, include:
- Your full legal name and, if you use one, your registered or operating business name
- Contact details: mailing address, phone number, and email
- A sequential invoice number and the invoice date
- The client's legal or trading name and billing address
- An itemised description of each good or service, with quantity, rate, and line total
- Subtotal, applicable taxes, and the total amount due
- Payment terms, the due date, and accepted payment methods
If you have a Business Number (BN) from the CRA, displaying it is good practice and helps larger clients process your invoice through their accounts payable system.
GST/HST and the tax details on your invoices
Once you register for GST/HST, your invoices become tax documents and must meet CRA requirements so business clients can support an input tax credit. The CRA expects more information on larger invoices — including your GST/HST account number and the tax charged — and fewer details on smaller ones. If you are a small supplier below the registration threshold, you generally do not charge GST/HST and should not show it on an invoice. Confirm the current threshold and the current invoice content rules on the CRA website, and see GST/HST invoicing requirements in Canada.
How to invoice a client: step by step
- Confirm scope, rate, and payment terms in writing before the work starts.
- Set up one invoice template you use every time, with your logo and contact block.
- Assign the next invoice number in sequence — avoid reusing numbers or skipping them at random.
- Itemise the work; attach a timesheet or project summary if the scope is complex.
- State the due date in plain language, such as Net 30 with a calendar date like 15 October.
- Send the invoice as a PDF by email and keep a copy of exactly what you sent.
- Record it in your bookkeeping system and log the payment when it clears.
Invoice template Canada: what each field does
| Field | Why it matters |
|---|---|
| Invoice number | Sequential IDs make follow-ups and reviews easier |
| Invoice date and due date | Establishes when a payment becomes overdue |
| Bill-to block | Gets the invoice to the right accounts payable contact |
| Line items and totals | Supports the amount charged and reduces disputes |
| Tax line | Required once you are registered for GST/HST |
| Payment instructions | Interac e-Transfer email, bank details, or client portal |
| Payment terms | Sets expectations and any interest on late payment |
Getting paid: terms, methods, and overdue accounts
Most Canadian sole proprietors bill on completion or monthly, with terms such as Net 15 or Net 30. Common payment methods include Interac e-Transfer, bank transfer, credit card through a processor, and cheque for older clients. Whatever you choose, spell it out on the invoice and in the contract. If an invoice goes unpaid, send a written reminder, then a firm follow-up with a deadline, and check whether you agreed on interest for late payment. Unpaid invoices are still business income you report; keep the paperwork even when a client never pays. Persistent non-payment may eventually mean provincial small claims court or a collections agency, so protect yourself with deposits on larger jobs.
Recordkeeping, bookkeeping, and tools
Every invoice you issue is a business record. Keep issued invoices, payment confirmations, bank statements, and expense receipts together so your year-end T2125 filing is straightforward. See bookkeeping for sole proprietors for a simple system, and business records retention in Canada for how long to keep them. If you would rather automate numbering, recurring invoices, and payment tracking, compare options in accounting software for small business.
Common invoicing mistakes sole proprietors make
- Changing your invoice number format mid-year, which breaks your records
- Leaving out the due date, so nothing is technically late
- Charging GST/HST before registration, or forgetting to charge it after
- Sending invoices from a personal email address that looks unprofessional
- Failing to record the invoice until tax time
Invoicing is a small administrative habit, not a regulatory hurdle. Get your template, numbering, and tax details right once today, and every invoice after that takes only minutes.
Frequently asked questions
Do I need a GST/HST number on my invoice as a sole proprietor?
Only if you are registered for GST/HST. Once registered, CRA rules require your invoices to show your GST/HST account number and the tax charged, so business clients can support an input tax credit. Before registration — typically as a small supplier below the current threshold — you generally do not charge or show GST/HST. Confirm the current rules on the CRA website, since the detail required increases for larger invoices.
Can I make my own invoice template in Canada?
Yes. There is no government-issued invoice template for sole proprietors, and no rule says you must buy software. You can build one in Word, Excel, Google Docs, or a free online tool. What matters is that every invoice carries a unique number, your name and contact details, the client's details, itemised charges, applicable taxes, the total, and clear payment terms. Keep the same layout each time so your records stay consistent.
What should I do if a client doesn't pay my invoice?
Start with a polite written reminder listing the invoice number, amount, and due date. Follow up by phone, then send a more formal demand letter with a firm deadline. Check your contract or engagement letter for late-payment terms, and consider interest charges if you stated them upfront. For larger unpaid amounts you may need provincial small claims court or a collections agency. Clear payment terms agreed before work begins reduce this risk.
Do I use my personal name or my business name on an invoice?
Use your full legal name, because a sole proprietorship is not a separate legal entity — you are personally responsible for the contract. If you have registered or operate under a business name, show both, for example Jane Doe o/a Doe Consulting. That keeps the invoice consistent with your contracts, bank account, and tax filings, and avoids confusion if a client writes the payment to the wrong name.