Small Business Invoice Template (Canada)

When to Use This Template

This template is for small businesses operating in Canada that need a reliable invoice format meeting Canada Revenue Agency (CRA) requirements. Canada’s tax system adds complexity because you may need to collect federal GST, provincial PST, or the combined HST, depending on your province and the type of goods or services you provide. Getting this right on every invoice is essential for your own tax filings and for your clients’ input tax credit claims.

The Canadian sales tax landscape is not uniform across provinces. Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island use HST, which combines the federal and provincial portions into a single tax. British Columbia, Saskatchewan, and Manitoba charge GST plus a separate PST. Quebec charges GST plus QST (Quebec Sales Tax). Alberta, Yukon, Northwest Territories, and Nunavut charge only GST with no provincial tax. Your invoice must reflect the correct tax treatment for the province where the supply is made.

For small businesses near the CAD 30,000 small supplier threshold, tracking your revenues carefully is important. Once you cross the threshold, you must register for GST/HST and begin charging tax on all taxable supplies. If you voluntarily register before reaching the threshold, you can claim input tax credits on your business expenses, which may be advantageous if you have significant startup costs or capital expenditures. Either way, your invoices need to be structured properly from day one.

Key Fields to Include

• Your business name (legal name and trade name if different)
• Business address
• GST/HST registration number (if registered)
• QST number (if applicable, for Quebec)
• Client’s name and address (required for invoices CAD 500+)
• Invoice number and date
• Description of goods or services
• Quantity, unit price, and line totals
• Subtotal before tax
• GST/HST amount (or GST and PST/QST shown separately)
• Total amount due in CAD
• Payment terms
• Payment method and bank details

Tips

• Use the CRA’s GST/HST registry to verify your clients’ registration numbers if they claim to be GST/HST registrants. This protects you in case of an audit.
• If you sell goods or services in multiple provinces, you may need to charge different tax rates on different invoices. Consider using invoicing software that automatically applies the correct rate based on the client’s province.
• The Quick Method of accounting simplifies GST/HST remittance for small businesses with taxable supplies under CAD 400,000. You charge the regular rate but remit a reduced percentage, keeping the difference. Check if your business qualifies.
• Retain all invoices and supporting documentation for six years from the end of the tax year. CRA can audit up to this period in most cases.
• If you deal in both zero-rated supplies (like basic groceries or prescription drugs) and taxable supplies, make sure each invoice correctly identifies the tax status of each line item.