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Contractor invoices: GST/HST and PST basics

If you are a registered contractor, your invoice has to show the right tax. The rate depends on the place of supply, which for work on a building or land is generally where the property is.

Not tax advice. This is general information, not advice for your situation. Date checked: October 23, 2026. Rules can change, so read the sources at the bottom.

Start with the place of supply

The CRA says the rate of GST/HST you charge depends on the place of supply. That is where you make the sale or supply. Its example: a Vancouver store delivers a mattress to Toronto, so it charges 13% HST.

For work on a building or land, the CRA's place-of-supply rules generally put the supply where the property is. Other kinds of service follow other rules, so check them before you quote a job in another province.

The rates, as of October 23, 2026

  • Alberta, Northwest Territories, Nunavut and Yukon: 5% GST, no PST.
  • British Columbia: 5% GST and 7% PST.
  • Manitoba: 5% GST and 7% PST.
  • Saskatchewan: 5% GST and 6% PST.
  • Ontario: 13% HST.
  • Quebec: 5% GST and 9.975% QST.
  • New Brunswick, Newfoundland and Labrador, Prince Edward Island: 15% HST.
  • Nova Scotia: 14% HST since April 1, 2025.

The CRA says to calculate the GST on the price without the PST.

What goes on the invoice

The CRA says you must tell your customer whether GST/HST applies and whether it is included in the price or added on top. You can do that on an invoice, a contract or a sign. Show:

  • The GST/HST rate that applies.
  • The amount payable and the GST/HST as separate lines, or a clear statement that the total includes GST/HST.

If HST applies, show the total HST rate, not separate federal and provincial parts.

When customers are registrants

A registrant customer needs extra details on your invoice to claim input tax credits, depending on the sale size. Our invoice requirements guide has the full table.

When the tax is due

The CRA says you are liable for the tax on the earlier of the day you are paid and the day payment is due. It treats payment as due on the invoice date or the date in a written agreement, whichever comes first. If you invoice before you are paid, report the tax for the period of the invoice date, paid or not.

Deposits work differently. The CRA says do not collect GST/HST on a deposit. Collect it when you apply the deposit to the price. If the customer forfeits a deposit, the tax is treated as included in the amount you keep. The CRA gives 5/105 for GST, 13/113 for 13% HST and 15/115 for 15% HST. The same method gives 14/114 in Nova Scotia. In Quebec it is GST at 5/105 plus QST at 9.975/109.975.

PST on contractor work: two examples

  • British Columbia. The province says a contractor who supplies and installs an improvement to real property does not charge the customer PST. The contractor pays PST on the goods used to do the job.
  • Manitoba. The province says its 7% retail sales tax is calculated on the selling price before the GST is applied.

Quebec has its own system. Revenu Québec says no special invoice format is required for the GST and QST, apart from restaurants and taxi operators, but a registrant's invoices still have to carry certain details.

Are you required to charge at all?

Small suppliers need not register until they pass $30,000. See our GST/HST $30,000 threshold guide.

A checklist before you send

  1. Confirm the place of supply and the rate.
  2. Show the rate and the tax amount.
  3. Show your GST/HST number if the customer is a registrant.
  4. Date the invoice. It usually sets your reporting period.
  5. Keep a copy. The CRA generally wants records for six years.

Sources

Date checked: October 23, 2026. Not legal, tax or accounting advice. Rules change, so check the official pages before you act.

Want this in a ready-to-use tool? The workbook is a spreadsheet for quotes, invoices, deposits, tax lines and a job log. See the Canadian Contractor Quote and Invoice Workbook (CA$19) or Get your kit.

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