Invoicing as a Canadian Freelancer

Invoicing is the lifeblood of freelancing — a professional, accurate invoice gets you paid faster, satisfies CRA requirements, and protects you legally if a client disputes payment. Yet many Canadian freelancers use informal invoices missing required elements, don't charge HST when they should, or fail to enforce payment terms. This guide covers everything you need.

When Must You Charge HST (or GST) on Your Invoice?

You must charge and remit GST/HST on your invoices once you are a "registrant" — meaning your gross revenues have exceeded $30,000 over any four consecutive calendar quarters. Before crossing this threshold, you are a "small supplier" and must not charge GST/HST (though you can voluntarily register earlier, which is often worth doing so you can claim Input Tax Credits).

HST Rates by Province (2026)

The rate you charge depends on the province where your client (the recipient of the supply) is located — not where you are:

Invoicing US or International Clients

Services supplied to non-residents who are not in Canada when the service is performed are generally zero-rated (0% GST/HST). This means you don't charge GST/HST on invoices to US or international clients, but you can still claim ITCs on your Canadian expenses. This is one of the advantages of working with foreign clients.

What Must Appear on a Canadian Invoice?

For CRA compliance, every invoice must contain specific information. For invoices over $100 the requirements are more detailed. Here's the complete list for an invoice over $500 (the most common scenario):

• Your legal business name (or personal name if sole proprietor)
• Your GST/HST registration number (RT number) — required if you're a registrant
• Invoice date
• Invoice number (unique sequential number)
• Client's name or trading name
• Description of the goods or services provided
• Total amount charged
• GST/HST amount charged, or a statement that HST is included
• Payment terms

Sample Canadian Freelancer Invoice

Payment Terms — What's Standard in Canada?

Payment terms define when the client is expected to pay. Common Canadian freelance terms:

• Net 15: Payment due 15 days after invoice date. Good for established clients or small projects.
• Net 30: The most common standard in Canada. Payment due 30 days after invoice date.
• 50% upfront, 50% on completion: Smart for new clients or large projects. Reduces risk significantly.
• Due on receipt: For recurring or subscription clients paying monthly.
• Milestone-based: Payment tied to project deliverables (e.g., 25% at kickoff, 50% at draft, 25% at delivery).

Late Payment Fees — Are They Enforceable in Canada?

Yes — late fees are legally enforceable in Canada provided they were clearly disclosed in your contract or on your invoice before work began. Simply adding a late fee clause to an invoice after the fact without a prior agreement is harder to enforce. The most common approach:

• State your late fee rate clearly in your contract and on every invoice
• Typical rates: 1.5%–2% per month (18%–24% annualized)
• You must charge and remit HST on late fees as well — they are taxable supplies
• Small Claims Court in every province handles unpaid invoice disputes up to $25,000–$35,000 depending on province

Getting Paid Faster — Practical Canadian Strategies

Use e-Transfer Autodeposit

Interac e-Transfer with autodeposit enabled removes friction for Canadian clients — they can pay instantly without you needing to accept. Set up autodeposit on your business bank account.

Invoice Immediately

Don't batch invoices at month end. Send an invoice within 24 hours of completing work or hitting a milestone. Prompt invoicing signals professionalism and triggers the client's payment workflow sooner.

Use Invoice Software

Software like FreshBooks or QuickBooks sends automated payment reminders, tracks invoice status, and integrates with your bank account for reconciliation. The time savings and faster payment easily justify the monthly cost.

Include All Payment Options

List every way clients can pay: e-Transfer, bank transfer (include your transit/institution/account numbers), credit card via Stripe or Square, PayPal, or cheque. The easier you make it, the faster they pay.

Invoicing Internationally — USD Invoices

Many Canadian freelancers earn in USD. You can invoice in any currency, but you must convert to CAD for tax reporting using the Bank of Canada exchange rate on the date of the transaction (or the average annual rate the CRA allows). Keep records of the exchange rate used. USD revenue is attractive because the exchange rate typically adds 30–35% to your effective CAD earnings.

Record Keeping Requirements

The CRA requires you to keep all invoices and supporting documents for six years from the end of the tax year they relate to. Store digital copies — the CRA accepts electronic records. Accounting software like FreshBooks automatically archives everything.