The Complete Guide to Invoicing in Canada (What to Include)

A professional invoice not only ensures you get paid on time but also serves as a crucial legal and financial record for your business. In Canada, if you are registered for GST/HST, there are specific pieces of information that the Canada Revenue Agency (CRA) requires you to include on your invoices. This guide covers everything you need to create a perfect invoice.

Essential Components for Every Invoice

Whether you're registered for GST/HST or not, every professional invoice should include these basic elements:

• The Word "Invoice": Clearly state that the document is an invoice.
• Your Business Name and Address: Your legal name or registered business name and contact information.
• Your Client's Name and Address: The full name and address of the person or company you are billing.
• A Unique Invoice Number: Use a sequential numbering system (e.g., 001, 002, 003) to easily track invoices.
• Invoice Date: The date the invoice was created.
• Payment Due Date: Clearly state when the payment is due (e.g., "Due in 15 days," or a specific date).

A Detailed Description of Services

Don't just write "Consulting Services." Be specific. Itemize the services you provided or the products you sold. Include the quantity, the rate, and the subtotal for each line item.

Example:

• Blog Post Writing (4 posts x $250/post) - $1,000.00
• Social Media Graphics (10 graphics x $50/graphic) - $500.00

Required Information for GST/HST Registrants

If you are registered for GST/HST, the CRA requires you to add the following information to your invoices for sales over $30:

• Your Business Number (BN) with the GST/HST account identifier (e.g., 123456789 RT 0001).
• The total amount of the invoice.
• The amount of GST or HST charged, or a statement that the total includes the tax.
• The rate of tax applied to each item (e.g., 5% GST or 13% HST).

For sales over $150, you must also show the GST/HST amount separately for each line item or show the subtotal of all items taxed at the same rate.

Payment Instructions

Make it easy for your clients to pay you. Clearly state your preferred payment methods. If you accept e-transfers, provide your email address. If you accept bank transfers, provide your banking details. If you use a payment processor like Stripe or PayPal, include a clickable payment link.

💡 Use Invoicing Software

The best way to ensure your invoices are always professional and compliant is to use accounting software like Wave (which is free), QuickBooks, or FreshBooks. These tools automatically generate compliant invoices, track payments, and send reminders, saving you time and ensuring you get paid faster.