Canada GST and HST invoicing rules for software teams

Canada applies two consumption taxes to business supplies: the federal goods and services tax (GST) and the harmonized sales tax (HST). GST is 5% on taxable supplies in the provinces that do not use HST. HST combines the federal and provincial parts in participating provinces at a combined rate of 13%, 14%, or 15%. Nova Scotia's rate dropped to 14% on April 1, 2025.

If your business is a GST/HST registrant, the tax must appear on the invoices you issue for taxable supplies. The content you must show depends on the total amount of the sale.

What your invoice must show

• Under $100: the supplier's business or trading name, the invoice date, and the total amount paid or payable.
• $100 to $499.99: everything above, plus the GST/HST charged (or a statement that the amount includes tax at the applicable rate), the supplier's GST/HST registration number, and the status of each supply if the invoice mixes taxable and exempt supplies.
• $500 or more: everything above, plus the buyer's name, trading name, or authorized agent's name, a brief description of the goods or services, and the terms of payment.

If no invoice is issued, the relevant date is the date the GST/HST is paid or payable.

What to capture in your system

Store the supplier's GST/HST registration number on every invoice that needs one. Record the tax rate or tax amount applied to each line, and the tax total for the invoice. For sales of $500 or more, store the buyer's legal or trading name. Keep the invoice date, and track the taxable or exempt status of each line when a single invoice mixes both.

Your customers need the same details to claim input tax credits, so an invoice that omits them can cause problems on their side. Keep these records for six years after the end of the year to which they relate.

E-invoicing

No e-invoicing mandate applies to GST/HST invoices. The CRA's 2025–26 departmental plan commits only to studying how electronic invoicing could improve GST/HST compliance in business-to-business transactions. It sets no requirement for businesses.

Next step

Review the developer documentation for the invoice fields and tax data your integration sends.