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Invoice Calculator

2025
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Invoice Preview

INVOICE

Tax Region: Ontario

Tax: HST 13%

Date: 2026-04-15

Invoice #: INV-001

DescriptionAmount
Web Development Services$2,500.00
Design Consultation$800.00
Subtotal$3,300.00
HST (13%)$429.00
Total$3,729.00
Tax Breakdown
Subtotal (before tax)$3,300.00
HST$429.00
Total Tax$429.00
Invoice Total$3,729.00
Effective Tax Rate13.00%
More Information
Understanding Canadian Invoicing & Sales Tax

Key information about invoicing requirements and GST/HST

A valid Canadian business invoice should include: your legal name or business name, business address, GST/HST registration number (if registered), invoice number and date, client name and address, description of goods or services, quantity and rate, subtotal, GST/HST and PST/QST breakdown with rates, and the total amount due. Payment terms should also be clearly stated.
If you are registered for GST/HST, you must display your registration number on all invoices. This allows your business clients to claim Input Tax Credits (ITCs) on the GST/HST they pay you. Without a valid GST/HST number, your clients cannot claim ITCs, which may cause them to prefer other vendors.
ITCs allow GST/HST-registered businesses to recover the GST/HST paid on business purchases. When you receive a properly prepared invoice with GST/HST listed, you can claim those amounts as ITCs on your GST/HST return. The ITC reduces the amount of GST/HST you owe to CRA.
GST/HST is generally charged based on the place of supply — where the customer receives the goods or services. If you sell to a client in Ontario, you charge HST 13%. If you sell to a client in Alberta, you charge GST 5% only. For services, the place of supply is usually where the client is located. Understanding place of supply rules is important for correct invoicing.
GST (5%) is the federal Goods and Services Tax. HST (13-15%) is the Harmonized Sales Tax used in ON, NB, NS, PE, NL — it combines GST and provincial tax. PST is Provincial Sales Tax charged separately in BC, SK, and MB. QST (9.975%) is Quebec's provincial sales tax, similar to PST but with different rules.
Most goods and services are taxable. However, some are exempt (healthcare, financial services, educational services) or zero-rated (basic groceries, prescription drugs, medical devices, exports). Exempt supplies mean you do not charge tax and cannot claim ITCs. Zero-rated supplies mean you charge 0% but can still claim ITCs.
Failing to collect and remit GST/HST when required can result in penalties of 6% of the amount owing plus interest. Issuing invoices with incorrect GST/HST information, inflating ITCs, or failing to register when required are all serious offences that can lead to audits, penalties, and interest charges from CRA.

CRA-Aligned: Sales tax rates are based on official CRA and provincial rates for 2025. Place of supply rules may affect which tax applies. Consult a tax professional for complex situations.

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

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