GST/HST Guide for Canadian Freelancers
Everything you need to know about collecting and remitting GST/HST as a freelancer in Canada — registration, rates, ITCs, invoicing, and filing.
Key Facts for Freelancers
Register once you exceed $30,000 in revenue over 4 quarters. Charge the rate based on your client's province. File annually if under $1.5M. Claim ITCs on all business expenses.
Do Freelancers Need to Register for GST/HST?
Whether you need to register for GST/HST depends on your revenue. The CRA uses a $30,000 small supplier threshold to determine who must register.
The $30,000 Small Supplier Threshold
You are considered a small supplier if your total worldwide taxable revenue (before expenses) is $30,000 or less over the last four consecutive calendar quarters. As a small supplier, you are not required to register for GST/HST and do not need to charge it on your invoices.
You must register once you exceed $30,000 in any single calendar quarter, or across four consecutive quarters. Registration must happen within 29 days of exceeding the threshold.
When Registration Becomes Mandatory
- Single quarter over $30K — if you earn more than $30,000 in one calendar quarter, you must register immediately and start charging GST/HST on services delivered after that point.
- Four-quarter cumulative — if your total revenue across any four consecutive calendar quarters exceeds $30,000, you must register before the next taxable supply.
- Taxi/ride-sharing — taxi and ride-sharing drivers must register regardless of revenue.
Benefits of Voluntary Registration
Many freelancers earning under $30,000 choose to register voluntarily. Here is why:
- Claim input tax credits (ITCs) — recover the GST/HST you pay on business expenses like software, equipment, and supplies. Without registration, you cannot claim ITCs.
- Professional credibility — displaying a GST/HST number on your invoices signals that you run a legitimate business.
- Seamless scaling — if your revenue is approaching $30,000, registering early avoids the disruption of mid-project price adjustments.
You can register for GST/HST online through CRA My Business Account. Processing takes about 5 business days.
How to Charge GST/HST as a Freelancer
The tax rate you charge depends on where your client is located, not where you live. This is the CRA's place-of-supply rule, and it is the most common source of errors on freelancer invoices.
Place of Supply: Client's Province Determines the Rate
For services, the general rule is that the client's province determines which tax applies. If you are a freelancer in Alberta (5% GST only) but your client is in Ontario, you charge 13% HST on that invoice. iBill calculates the correct rate automatically based on the client's province.
GST/HST Rates by Province
| Province / Territory | Tax Type | Total Rate |
|---|---|---|
| Ontario | HST | 13% |
| Nova Scotia | HST | 14% |
| New Brunswick | HST | 15% |
| Newfoundland & Labrador | HST | 15% |
| Prince Edward Island | HST | 15% |
| British Columbia | GST + PST | 5% + 7% = 12% |
| Saskatchewan | GST + PST | 5% + 6% = 11% |
| Manitoba | GST + PST | 5% + 7% = 12% |
| Quebec | GST + QST | 5% + 9.975% = 14.975% |
| Alberta | GST only | 5% |
| Northwest Territories | GST only | 5% |
| Nunavut | GST only | 5% |
| Yukon | GST only | 5% |
Use the free GST/HST calculator to check the exact amount for any province. Province-specific calculators: Ontario HST, BC PST, Quebec QST, Alberta GST, Saskatchewan PST.
HST Provinces vs GST+PST Provinces
In HST provinces (ON, NS, NB, NL, PE), you charge a single combined rate. In GST+PST provinces (BC, SK, MB), you charge GST and PST as separate line items. In Quebec, you charge GST and QST separately — and importantly, QST is calculated on the subtotal only (not compounded on GST). iBill handles all of these automatically.
PST Exemption for Services
In British Columbia, Saskatchewan, and Manitoba, many professional services are exempt from PST. If your freelance services qualify (consulting, web development, graphic design, etc.), you charge only the 5% federal GST. iBill supports a PST-exempt flag on invoices for these cases.
Input Tax Credits (ITCs) for Freelancers
Input tax credits are one of the biggest benefits of GST/HST registration. They let you recover the GST/HST you pay on legitimate business expenses, reducing the net tax you owe.
How ITCs Work
When you file your GST/HST return, you report two numbers: the total GST/HST you collected from clients, and the total GST/HST you paid on business expenses. The difference is your net tax. If you paid more in GST/HST on expenses than you collected, the CRA sends you a refund.
Example: You collected $2,600 in GST/HST from clients this year. You paid $1,100 in GST/HST on business expenses. Your net tax is $2,600 − $1,100 = $1,500 owing.
Eligible Business Expenses
You can claim ITCs on the GST/HST portion of most business expenses. Common freelancer claims include:
- Software and subscriptions — design tools, project management, cloud hosting, accounting software
- Office supplies and equipment — computer, monitor, desk, printer, paper
- Professional development — courses, conferences, books, certifications
- Internet and phone — business-use portion of your monthly bills
- Marketing and advertising — website hosting, domain names, paid ads
- Professional services — legal fees, accountant fees, subcontractors
Home Office ITCs
If you work from home, you can claim the business-use percentage of home expenses: rent or mortgage interest, utilities, insurance, and property taxes. Calculate your business-use percentage based on the square footage of your dedicated workspace relative to your total home. The GST/HST portion of these costs is claimable as an ITC.
Vehicle ITCs
If you use your vehicle for business (client meetings, site visits), you can claim ITCs on the business-use portion of gas, maintenance, insurance, and lease payments. Keep a mileage log to support your claim. iBill's mileage calculator helps track business kilometres.
iBill tracks ITCs automatically when you log business expenses with the tax amount. Your tax reports show total ITCs by filing period, ready for your return.
Filing Your GST/HST Return
Once registered, you must file GST/HST returns on schedule — even if you owe nothing or are due a refund. Missing a filing deadline results in penalties and interest.
Filing Frequency
- Annual (under $1.5M revenue) — most freelancers file once per year. The return is due 3 months after your fiscal year-end. If your fiscal year ends December 31, your GST/HST return is due by March 31.
- Quarterly ($1.5M to $6M revenue) — returns due one month after each quarter ends.
- Monthly (over $6M revenue) — returns due one month after each reporting period.
You can voluntarily elect a more frequent filing period. Some freelancers choose quarterly filing to get ITC refunds faster rather than waiting until year-end.
Calculating Net Tax
Your net tax is straightforward:
Net Tax = GST/HST Collected − Input Tax Credits (ITCs)
If the result is positive, you owe that amount to the CRA. If negative, the CRA owes you a refund. iBill's tax liability reports calculate this by filing period automatically.
The Quick Method of Accounting
If your annual taxable revenue (including GST/HST) is $400,000 or less, you may be eligible for the quick method. Instead of tracking ITCs on every expense, you remit a flat percentage of your revenue (the rate varies by province and whether you provide services or goods). For most service-based freelancers, the quick method results in keeping a portion of the GST/HST collected — effectively a small tax savings.
The trade-off: you cannot claim individual ITCs on expenses (except on capital assets over $30,000). The quick method works best for freelancers with low business expenses relative to revenue.
Filing Online
File through CRA My Business Account, NETFILE-certified software, or by phone (Telefile for annual filers). iBill generates the figures you need — total tax collected, total ITCs, and net tax — organized by filing period so you can transfer them directly to your return.
Invoicing Requirements for GST/HST Registrants
The Excise Tax Act (ETA Section 3) sets specific requirements for what must appear on invoices from GST/HST registrants. The requirements increase with the invoice amount.
Under $100 (Simplified Invoice)
- Date of the supply
- Your business name (or trade name)
- Total amount paid or payable
- Indication that GST/HST is included (or the tax amount)
$100 to $150 (Intermediate Invoice)
All of the above, plus:
- Your GST/HST registration number
- The client's name or trading name
- The GST/HST amount charged (or a statement that tax is included in the total)
Over $150 (Full Invoice)
All of the above, plus:
- Your full business address
- The client's full name and address
- A description of each service or product
- Payment terms and invoice date
- Each tax component broken out separately (GST, HST, PST, QST)
- The total payable
Invoice Numbering
While the ETA does not mandate a specific numbering format, sequential invoice numbers are a best practice for audit readiness. iBill assigns numbers automatically in PREFIX-YYYYMM-#### format (e.g., INV-202603-0001) when you send an invoice, with monthly resets and gap tracking. See our invoice numbering guide for details.
iBill's CRA-ready invoice templates include every required field automatically. The system validates invoices against these thresholds before sending. Learn more about what to include on an invoice.
GST/HST Tools for Freelancers
Everything you need to collect, track, and remit GST/HST — built into iBill
GST/HST Tax Calculator
Calculate GST, HST, PST, and QST for any province instantly. Enter an amount, pick a province, and see the exact tax breakdown. Try it: $100 in Ontario = $113.00.
Freelancer Invoicing
Create professional invoices with the correct GST/HST calculated automatically based on your client's province. Sequential numbering, PDF export, email delivery, and client portal.
Expense & ITC Tracking
Log business expenses with receipt uploads. iBill tracks the GST/HST on each expense as an input tax credit automatically, so your ITC total is always ready for filing.
Tax Liability Reports
See GST/HST collected vs ITCs claimed by filing period. Your net tax is calculated automatically — transfer the figures directly to your return. Cash-basis reporting for accurate timing.
ITC Recovery
Never miss a deduction. Every business expense you log has its GST/HST component tracked. Year-end totals are calculated automatically, including home office and vehicle business-use portions.
Filing Period Prep
Organized by your filing period (annual, quarterly, or monthly). Tax collected, ITCs, and net tax are summarized so you can file in minutes — not hours. Exportable to CSV.
Start Invoicing with Automatic GST/HST
Create your first invoice in under 2 minutes. Tax rates, ITC tracking, and filing reports included. Get started in minutes, no time limit.
Create AccountFreelancer GST/HST FAQs
Ready to simplify your GST/HST as a freelancer?
Create AccountGST/HST Made Simple for Freelancers
Automatic tax rates, ITC tracking, and filing-ready reports. Easy to get started.
Create AccountUnlimited Invoices • CRA Audit-Ready