The short version
- You must register once your taxable sales go over $30,000 in four consecutive calendar quarters, or in a single quarter. Below that you may register voluntarily.
- GST is 5%. HST is 13% in Ontario, 14% in Nova Scotia and 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island.
- On invoices of $100 or more, show your registration number and the tax, either as its own line or with a statement that the total includes it.
- BC, Saskatchewan and Manitoba add their own PST or RST, and Quebec adds QST, each with its own rules on services.
Do you need to register?
Most services in Canada are taxable, so most service businesses deal with GST/HST sooner or later. The Canada Revenue Agency says you are a small supplier, and do not have to register, as long as your taxable sales stay at $30,000 or less over four consecutive calendar quarters.
- Over $30,000 in a single calendar quarter: you stop being a small supplier right away, and charge GST/HST starting with the sale that took you over.
- Over $30,000 across four quarters in a row, but not in one: you stop being a small supplier at the end of the month after the quarter in which you went over.
- Under the threshold: you may still register voluntarily, which lets you claim back the GST/HST you pay on business costs.
Worked example
A cleaning business adding up its last four quarters
- January to March
- $6,000
- April to June
- $7,500
- July to September
- $8,000
- October to December
- $9,200
- Four quarters together
- $30,700
Over $30,000 across four quarters, though no single quarter was. By the CRA’s rule, the business stops being a small supplier at the end of January, the month after the quarter it went over in.
Your GST/HST number is your 9 digit business number followed by RT and a 4 digit reference, like 123456789 RT0001.
Which rate to charge
The CRA says the rate depends on the place of supply: the province or territory where, under its rules, the sale is made. That is not always where your business is based. When work or clients cross provinces, check the CRA’s place of supply rules or ask your accountant.
| Province or territory | Federal or harmonized tax | Provincial tax |
|---|---|---|
| Ontario | HST 13% | Included in HST |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | HST 15% | Included in HST |
| Nova Scotia | HST 14% (since April 1, 2025) | Included in HST |
| British Columbia | GST 5% | PST 7% |
| Manitoba | GST 5% | RST 7% |
| Saskatchewan | GST 5% | PST 6% |
| Quebec | GST 5% | QST 9.975% |
| Alberta, Northwest Territories, Nunavut, Yukon | GST 5% | None |
Some supplies are exempt or zero rated, which changes all of this. The CRA’s type of supply pages say which is which; check yours before you charge anything.
What your invoice must show
Your registered business clients need certain details on your invoice to claim back the tax they pay you. The CRA sets them by the total of the sale:
| Information | Under $100 | $100 to $499.99 | $500 or more |
|---|---|---|---|
| Your business or trading name | Yes | Yes | Yes |
| The invoice date | Yes | Yes | Yes |
| The total amount | Yes | Yes | Yes |
| The GST/HST charged, or a statement that the total includes it at the rate | No | Yes | Yes |
| Which items are taxable, when some are and some are not | No | Yes | Yes |
| Your GST/HST registration number | No | Yes | Yes |
| The buyer’s name | No | No | Yes |
| A brief description of the work | No | No | Yes |
| The terms of payment | No | No | Yes |
For how to show the tax, the CRA gives two options: the tax as its own amount, or a clear statement that the total includes GST/HST. If HST applies, show the total HST rate, and do not split it into federal and provincial parts. In practice, put everything in the $500 column on every invoice and you never have to think about it.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| Service call1 visit × CA$95.00 | 1 visit | CA$95.00 | CA$95.00 |
| Replace kitchen faucet2.5 hr × CA$110.00 | 2.5 hr | CA$110.00 | CA$275.00 |
| Faucet cartridge1 ea × CA$48.50 | 1 ea | CA$48.50 | CA$48.50 |
HST 123456789 RT0001. Due within 14 days of the invoice date.
PST, RST and QST
Four provinces charge their own sales tax next to GST. Each decides which services it taxes, so a service that carries GST may or may not carry the provincial tax.
British Columbia: PST 7%
BC’s PST applies to goods and to a list of services, including services to taxable goods (installing or maintaining them), repairs to goods like electronics and equipment, software, legal services and telecommunication services. A real property contractor generally pays PST on the materials and does not charge PST to the customer. Small sellers with $10,000 or less a year in eligible sales may not have to register.
Saskatchewan: PST 6%
Saskatchewan taxes services to real property, such as construction, repair and remodeling. A contractor collects PST on the total charge to the customer, and must show it as a separate line on the invoice.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| Build cedar deck24 hr × CA$75.00 | 24 hr | CA$75.00 | CA$1,800.00 |
| Lumber, fasteners and footings1 job × CA$2,150.00 | 1 job | CA$2,150.00 | CA$2,150.00 |
GST 123456789 RT0001.
Manitoba: RST 7%
Manitoba taxes services only when the law lists them, such as repairing, maintaining or cleaning goods, and accounting, architectural, legal, engineering and security services. Services to real property, like construction labor, are not taxed; contractors pay RST on their materials instead. Businesses with annual taxable sales under $30,000 do not have to register, and vendors must show the RST separately on each invoice.
Quebec: QST 9.975%
Quebec’s QST is administered by Revenu Québec. Since January 1, 2013 it applies to the selling price not including GST, so the two taxes are worked out side by side on the same price.
Worked example
A $1,000 service in Quebec
- Price
- $1,000.00
- GST (5% of $1,000)
- $50.00
- QST (9.975% of $1,000)
- $99.75
- Total
- $1,149.75
QST registration has its own rules at Revenu Québec. Check them before your first Quebec invoice.
Work out any of these, or take the tax back out of a total, with the sales tax calculator.
GST and HST in Sumocat
Add one or more taxes to any invoice or estimate, like GST and PST, and Sumocat prints each on its own line with its rate. Your tax registration number prints on your documents, and a line that is not taxable can be marked so it stays out of the tax. All of this is free.
When it is time to file, the Accountant Pack exports any whole tax year with a sales tax summary, free. Sumocat Pro PRO adds the Sales Tax report and the same pack for any period, like a quarter for a quarterly GST/HST return.
An invoice with GST, HST or PST
Pick a province and the tax lines fill in. Download the PDF, free.
Questions
Do I charge GST/HST if I am not registered?
A small supplier, with taxable sales of $30,000 or less over four consecutive calendar quarters, does not have to register. Once you register, voluntarily or because you went over, you charge GST/HST on your taxable sales. Check with the CRA or an accountant for your situation.
Can I show HST as GST plus a provincial part?
No. The CRA says that where HST applies, you show the total HST rate and do not show the federal and provincial parts separately.
Which rate do I charge a client in another province?
It depends on the place of supply, which the CRA decides by its own rules for each type of sale. It is not always the province your business is in, so check the CRA’s rules or ask your accountant when work crosses provinces.
Do I need to show my GST number on every invoice?
The CRA requires it on invoices of $100 or more for your registered clients to claim the tax back. Putting it on every invoice is simpler and costs nothing.
Sources
The official pages this guide relies on, with the date we last checked each one. Rules and rates change, so check the page itself before you rely on it.
- Canada Revenue Agency, When to register for and start charging the GST/HST. www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html Checked .
- Canada Revenue Agency, Type of supply. www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-type-supply.html Checked .
- Canada Revenue Agency, Charge and collect the GST/HST: which rate to charge and what to include on invoices. www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html Checked .
- Canada Revenue Agency, GST/HST calculator (and rates). www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html Checked .
- Canada Revenue Agency, Input tax credits: records you need to support your claim. www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/calculate-prepare-report/input-tax-credit.html Checked .
- Canada Revenue Agency, Program accounts you may need. www.canada.ca/en/revenue-agency/services/tax/businesses/topics/business-registration/business-number-program-account/need-program-accounts.html Checked .
- Government of British Columbia, Small business guide to PST. www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/publications/small-business-guide Checked .
- Government of British Columbia, Provincial sales tax frequently asked questions. www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/faqs Checked .
- Government of Saskatchewan, Provincial Sales Tax. www.saskatchewan.ca/business/taxes-licensing-and-reporting/provincial-taxes-policies-and-bulletins/provincial-sales-tax Checked .
- Government of Saskatchewan, Information Bulletin PST-12, Services to Real Property. sets.saskatchewan.ca/rptp/wcm/connect/adfe994a-c248-4182-8e35-12729540c6df/PST.012+Services+to+Real+Property.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-adfe994a-c248-4182-8e35-12729540c6df-p4ONpnz Checked .
- Province of Manitoba, Retail Sales Tax. www.gov.mb.ca/finance/taxation/taxes/retail.html Checked .
- Province of Manitoba, Bulletin 030, Summary of Taxable and Exempt Goods and Services. www.gov.mb.ca/finance/taxation/pubs/bulletins/030.pdf Checked .
- Province of Manitoba, Bulletin 004, Information for Vendors. gov.mb.ca/finance/taxation/pubs/bulletins/004.pdf Checked .
- Revenu Québec (news release on Newswire), Changes to the QST system: the changes will not affect the total paid on purchases. newswire.ca/news-releases/changes-to-the-qst-system---reminder-from-revenu-quebec-that-the-changes-will-not-affect-the-total-paid-on-purchases-511390171.html Checked .