Updated: April 2025  |  bremo.io financial guides

Invoicing Guide for Canadian Freelancers: Get Paid Properly

Your invoice is the legal document that requests payment for your work and establishes your right to be paid. A well-structured invoice protects you legally, satisfies CRA requirements if you're registered for GST/HST, and makes it easier for clients to pay you quickly.

This guide covers everything a Canadian freelancer needs to know about creating proper invoices, including GST/HST requirements, payment terms, and handling late payments.

What Every Invoice Needs

At minimum, a freelance invoice should include:

• Your name or business name and contact information
• Client name and contact information
• Invoice number — sequential, for your records and theirs
• Invoice date
• Description of services — what you did, when, how many hours or units
• Amount charged per service or item
• Total amount due
• Payment due date
• Payment methods accepted

GST/HST Requirements on Invoices

If you're registered for GST/HST, your invoices must also include:

• Your GST/HST registration number (9-digit business number + RT0001)
• The GST/HST amount charged, shown separately from the base amount
• The rate of GST/HST applied (e.g., 13% HST for Ontario)

If you're not registered for GST/HST (under the $30,000 threshold), do not add HST to your invoices and do not include a registration number. Charging HST without being registered is illegal.

Invoice Numbering

Use a consistent sequential numbering system. Common formats:

• INV-001, INV-002, INV-003
• 2025-001, 2025-002 (year + sequence)
• Client-specific: CLIENTNAME-001

Invoice numbers are important for your own records and make it easy to reference specific invoices in follow-up communications.

Payment Terms

Payment terms specify when payment is due. Common options:

• Due on receipt — payment expected immediately
• Net 15 — payment due within 15 days
• Net 30 — payment due within 30 days (most common for B2B)
• Net 45 / Net 60 — for larger corporate clients with slower payment cycles

Set your payment terms in your contract before starting work. Don't let clients dictate extended terms without negotiating — 30 days is standard and reasonable for most freelance work.

Requiring Deposits

For larger projects, require a deposit (typically 25–50%) before starting work. This:

• Filters out non-serious clients
• Ensures you're compensated if the project is cancelled
• Improves your cash flow

Create a separate invoice for the deposit and note it as a deposit on the final invoice.

Late Payment Fees

You can charge late payment fees — but they must be disclosed in your terms before work begins. Common approaches:

• 1.5–2% per month on overdue balances
• A flat late fee (e.g., $50 if not paid within 30 days)

Include your late fee policy in your contract or on your invoice footer. Late fees are income and must be reported. The GST/HST treatment of late fees varies — consult CRA guidance if you're registered.

Accepting Payment: Methods

The more payment options you offer, the faster you'll get paid. Common options for Canadian freelancers:

• Interac e-Transfer — free, instant, widely used in Canada
• EFT (direct bank transfer) — provide your account and transit number
• Cheque — slower, still used by many businesses
• PayPal or Wise — useful for international clients
• Stripe or Square — accepts credit cards, small processing fee

For most domestic Canadian clients, Interac e-Transfer is the fastest and cheapest option.

Invoicing Software for Freelancers

Manual invoices (Word or Excel) work fine when starting out, but invoicing software saves time and reduces errors:

• Wave — free, Canadian-friendly, handles GST/HST, tracks payments
• FreshBooks — paid, excellent for freelancers, automatic reminders
• QuickBooks Self-Employed — integrates with taxes
• HoneyBook or Dubsado — for service businesses needing contracts + invoices together

Following Up on Late Invoices

Don't let overdue invoices sit. A professional follow-up process:

1. Day 1 after due: Friendly reminder email with invoice attached
2. Day 7: Follow-up call or email, note the overdue balance
3. Day 14: Formal notice that late fees are accruing
4. Day 30+: Consider a collections letter or small claims court

Most late payments resolve at step 1 or 2. Clients are often just disorganized, not malicious.

Record-Keeping

Keep copies of all invoices for at least six years. The CRA can audit your business income and require proof that reported amounts are accurate. Your invoices are the primary documentation. Store them in a cloud-based system (Google Drive, Dropbox) for easy access.