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Quote vs invoice in Canada: what each one should show

A quote is an offer of a price before the work. An invoice is the bill after the work. Each one has different jobs, and a few rules apply.

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.

Two documents, two jobs

A quote says what you will do and what it will cost. An invoice asks for payment and records the sale. For a registrant, the invoice also supports the customer's tax claims.

We found no federal rule that gives a set layout for either one. Revenu Québec says no special invoices or rules are imposed under the GST/HST and QST systems, apart from restaurant and taxi businesses. That is why the rules below are about what the paper must tell the customer, not how it looks.

What a quote should show

These items are good practice, not a legal list:

  • Your business name and contact details.
  • The customer's name.
  • A description of the work.
  • The price, and whether tax is included or added.
  • The date, and how long the price is good for.
  • Your deposit and payment terms.

Tax on the quote

The CRA says you must let customers know if GST/HST is applied and whether it is in the price or added separately. It names contracts and invoices as ways to do that. So a quote that says “$2,000 plus applicable tax” or “$2,260 including 13% HST” does the job. A quote with only “$2,000” leaves the customer guessing.

Ontario: estimates and the 10% rule

Under Ontario’s Consumer Protection Act, 2002 (s. 10), if a consumer agreement includes an estimate, the supplier can’t charge more than 10% above it unless the consumer agrees to a changed price. It covers consumers buying for personal, family or household purposes, not business customers. Other provinces have their own rules, so check yours. Our practical tip: if the scope changes, write down the new price and get a yes before you do the extra work.

What an invoice must show

For any customer, the CRA says to show the GST/HST rate and the amount payable, with the tax as a separate line or a clear note that the total includes it. For a registrant customer, the details depend on the total:

  • Under $100: your business name, the date and the total.
  • $100 to $499.99: add the GST/HST amount (or a note that the price includes it) and your GST/HST number.
  • $500 or more: add the buyer's name, a short description and the payment terms.

Our full table covers the details.

Deposits

The CRA says a deposit is not payment until you apply it to the price. Collect the GST/HST at that point. If the customer forfeits the deposit, you owe the tax on it. Write on your quote how the deposit works, and show it as a credit on the final invoice.

The invoice date matters

The CRA says you owe the GST/HST on the earlier of the day you are paid and the day payment is due, and it treats payment as due on the invoice date or the written-agreement date, whichever is first. An invoice sent late can shift tax into another period, so date it when you issue it.

Keep both

Save the signed quote, the change notes and the invoice together for each job. The CRA says to keep GST/HST records generally for six years.

A simple flow

  1. Send a quote with the tax shown.
  2. Get a yes in writing.
  3. Take a deposit if you use one.
  4. Note any change in writing.
  5. Invoice with the right details and the real date.

Our contractor GST/HST and PST guide covers the rates.

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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