GST vs HST in Canada: Which Rate Goes on Your Invoice

Canada's sales tax confuses almost everyone who starts a business here, because the answer genuinely depends on where the customer is. Charge Ontario's rate to a customer in Nova Scotia and you've under-charged; mix up GST-only provinces with HST provinces and your remittance gets messy. This page walks through how it works in plain terms. It's general information, not tax advice — rates and thresholds change and provinces tinker with theirs, so the CRA's pages and your accountant are the ones to trust for a final answer.

The short version of how Canadian sales tax works

There's a federal GST of 5%. Some provinces add their provincial tax on top of it — and where the province has harmonised, you charge one combined HST instead of two separate taxes. Provinces that haven't harmonised collect the federal GST plus their own provincial sales tax (PST, QST in Quebec) under separate rules. As of this writing, the harmonised provinces charge 13% (Ontario) or 15% (the Atlantic provinces, for example), but provincial rates do change — always confirm the rate that applies to the buyer's province before invoicing.

Do you even need to charge it?

If you're a small supplier under the registration threshold — commonly $30,000 of taxable revenue over four consecutive calendar quarters — you generally don't have to register or charge GST/HST. Below that it's usually optional, and registering has pros and cons: you can claim input tax credits, but you also have to collect and remit. Above the threshold you're expected to register and charge the tax on taxable supplies. Confirm where the current threshold sits with the CRA before you make the call either way.

What a GST/HST invoice needs on it

• Your business number (BN) — the CRA number you get when you register, including the GST/HST account portion (the "RT" part). Without it the customer can't claim an input tax credit.
• Seller and buyer identity — names and addresses so the sale is traceable.
• The date and a description of the supply — what was sold or provided.
• The tax charged — shown separately, or the total with tax included. Your BN plus the rate tells the reader which province's rules you applied.
• Your own numbering — the CRA's rules on what a "tax invoice" vs a simple invoice must contain differ by sale size, so for larger B2B sales make sure the document qualifies.

The mistake that shows up most

Applying your own province's rate to out-of-province customers. If you're in Alberta (no provincial sales tax) and invoice a customer in Ontario, the HST question depends on where the supply is made and whether the customer is registered — not on where you happen to sit. Exporting to other countries is usually GST/HST-free, but the paperwork still matters. When a sale crosses a border you're less sure about, that's exactly when a quick call to the CRA's GST line or your accountant saves a painful correction later.

How to create one with SleekKitBox

1. Open the HST/GST Invoice (Canada) template.
2. Enter your business name and BN, the client, and the province that applies to the sale.
3. Put the current rate for that province (for example 13 or 15 for HST provinces) into the tax field — the form works out the tax on your totals.
4. Download the PDF. If you email it to clients who pay by transfer, adding a QR code with your payment details is a nice touch — SleekKitBox's free QR code generator makes one in seconds.

Canadian sales tax feels like a maze until you reduce it to one habit: know the rate for the buyer's province before you type the invoice. Do that, keep your BN on every document, and the remittance side of things stops being scary.

Frequently asked questions

What's the difference between GST, HST and PST? GST is federal (5%). Where a province harmonised, GST and provincial tax are combined into one HST you charge and remit together. Non-harmonised provinces have separate provincial rules (PST/QST) that you handle independently.

Do I charge HST if my business is in Ontario but the client is in BC? Not necessarily — the applicable tax depends on where the supply happens and the parties' registration status, not just where you're based. Confirm before invoicing cross-province.

Is the HST rate the same everywhere? No — harmonised provinces currently use 13% or 15%, and the list can change, so always verify the current rate.

Where do I confirm current rates and rules? The CRA's GST/HST pages are the starting point; your accountant is the second opinion when a sale is unusual.

👉 Create your Canadian invoice: free HST/GST Invoice (Canada) template →