The Short Version

GST is the federal goods and services tax. HST is a harmonized tax used in participating provinces. PST is a separate provincial sales tax used in some provinces. Your invoice should show the tax that applies to the transaction, not the tax you wish applied.

GST

GST is the federal layer of Canadian sales tax. Businesses registered for GST/HST may need to charge it on taxable supplies, collect it from customers, report it, and remit it to the Canada Revenue Agency.

HST

HST combines the federal GST and a provincial component into one harmonized rate. If HST applies, show it as HST at the applicable rate. Do not split it into separate GST and provincial lines unless your accountant has a specific reason to present it that way.

PST

PST is separate from GST/HST and depends on provincial rules. British Columbia, Saskatchewan, and Manitoba have provincial sales tax systems. Quebec has QST. Some services, digital products, and goods can be treated differently, so province matters.

What to Put on the Invoice

At minimum, show the subtotal before tax, each tax that applies, and the total. If GST/HST applies, include your Business Number where appropriate. If PST applies, show it separately so the client can see exactly what was charged.

Examples

• Ontario service invoice: subtotal, HST at 13%, total.

• British Columbia taxable goods invoice: subtotal, GST, PST if applicable, total.

• Alberta service invoice: subtotal, GST if applicable, total.

Common Mistakes

• Charging GST/HST before you are registered.

• Using your home province rate when the place of supply points elsewhere.

• Combining PST and GST/HST into one vague “tax” line.

• Forgetting to keep invoice records that support what you charged.

A Good Rule of Thumb

Make the invoice understandable to three people: your client, your accountant, and future you. Clear tax labels today prevent slow payment and messy questions later.