How Canada HST / GST works
How to calculate GST on Canadian invoices
- 1
Determine your applicable GST/HST rate
Federal GST is 5%. Ontario uses 13% HST; Nova Scotia uses 15% HST. Some provinces charge GST and PST separately — use the combined percentage on your invoice.
- 2
Calculate tax from a net (pre-tax) amount
Tax = Net × (Rate ÷ 100). Total = Net + Tax. Example (13% HST): CA$800 net → CA$104 tax → CA$904 gross.
- 3
Extract tax from a gross (tax-inclusive) amount
Net = Gross ÷ (1 + Rate/100). Tax = Gross − Net. Example: CA$904 gross at 13% → CA$800 net + CA$104 HST.
- 4
Apply tax to each line item on the invoice
Multiply quantity × unit price for each line, sum subtotals, then calculate GST/HST on the subtotal (or per line if required). Show subtotal, tax, and total clearly.
- 5
Include required fields on a Canadian tax invoice
Add your business name, GST/HST registration number, invoice number, date, client details, item descriptions, tax rate, tax amount, and total in CAD.
Reverse charge & inclusive prices
Canada generally does not use EU reverse charge, but specific imported taxable supply rules may apply. Confirm with the CRA for cross-border services.
Invoice requirements
Canadian invoices should show business name, invoice number/date, customer details, description, and GST/HST registration number when required, with tax amounts clearly stated.
Read our full guide: How to calculate GST on Canadian invoices