GST/HST for Consultants
GST/HST for consultants: rates by client location, zero-rated foreign clients, rebilled expenses and the quick method.
The short version
- Consultants, coaches, designers, developers and other service businesses charge GST/HST once registered, generally at the rate of the province of the client's address, not their own.
- Many services to non-resident clients are zero-rated: you charge 0% and still claim input tax credits. There are exceptions, such as services to individuals who are in Canada when the service is performed.
- Expenses you rebill to a client (travel, software, materials) are usually part of your taxable fee; true disbursements paid as the client's agent are not.
- Many service businesses with low costs save money with the quick method, but bookkeepers, accountants, tax preparers, financial consultants and lawyers can't use it.
- Business clients claim back the GST/HST you charge, so registering early rarely costs a B2B consultant anything.
GST/HST for Consultants
Consulting is the easiest kind of business to start and one of the easiest to get wrong on GST/HST, mostly because clients are everywhere. An Ottawa consultant can easily invoice clients in Toronto, Calgary, Halifax and Boston in one week, at four different rates (one of them 0%). Here's how to get each invoice right, and whether the quick method is worth it.
What to Charge, by Client
| Client | Usually charge |
|---|---|
| Business or individual with an Ontario address | 13% HST |
| Client with an Alberta, BC, Saskatchewan or Manitoba address | 5% GST (provincial sales tax may apply separately to some services in those provinces) |
| Client with a Nova Scotia address | 14% HST |
| Client with a New Brunswick, Newfoundland and Labrador or PEI address | 15% HST |
| Non-resident business with no Canadian presence | Often 0% (zero-rated export of services) |
| Non-resident individual in Canada when you serve them | Usually taxable at the regular rate |
For services, the general rule uses the client's business or home address that you obtain in the normal course. Keep it on file. More on how to charge GST/HST.
Clients in several provinces or abroad?
List your clients by location and the services you provide. The SmartFile tells you the rate for each, which foreign clients qualify for 0%, and whether the quick method would save you money.
Zero-Rated Services to Non-Residents
Most services supplied to a non-resident who isn't registered for GST/HST are zero-rated. Exceptions include services rendered to an individual while they're in Canada, services related to real property in Canada, and some advisory services connected to Canadian matters. Zero-rated sales still count toward the $30,000 registration threshold, and you still claim ITCs on your costs, which is why consultants with mostly foreign clients often get refunds. More for independent workers in freelancer taxes.
Expenses You Rebill
| Item | Treatment |
|---|---|
| Travel, hotels, meals you bill back as part of your fee | Part of your taxable fee: charge GST/HST on the full amount (and claim ITCs on the costs) |
| Software or materials you buy and resell to the client | Taxable as part of your supply |
| A true disbursement: you pay a third party as the client's agent (filing fees, the client's own account) | Pass through at cost without GST/HST from you; no ITC for you |
The difference depends on the contract and who's really receiving the supply. When in doubt, CRA treats rebilled costs as part of your fee.
The Quick Method for Consultants
A consultant with low taxable costs often keeps more under the quick method: an Ontario service business remits 8.8% of HST-included sales instead of 13% minus ITCs. On $80,000 of Ontario fees, that's roughly $1,800 a year in the business's favour if costs are small. Excluded: lawyers, accountants, actuaries, bookkeepers, tax preparers and financial or tax consultants. Rates and a full comparison are on the quick method.
Should You Register Early?
If your clients are businesses, they claim back the GST/HST you charge, so registering costs them nothing and lets you recover tax on your laptop, software and office costs. If your clients are individuals (coaching, tutoring, personal services), registering means a real price increase for them; waiting until you pass $30,000 can make sense. See do I need a GST/HST number?
Incorporated Consultants
A consulting corporation registers and charges GST/HST exactly the same way. If the corporation effectively works for one client as an employee would, the income tax "personal services business" rules are the bigger issue; see contractor vs employee.
Back to the GST/HST guide.
Consultant GST/HST Questions
Do consultants charge GST/HST?
Yes, once registered. Consulting services are taxable, generally at the rate of the province of the client’s address.
Do I charge GST/HST to a US client?
Usually not. Most services to non-residents who are not registered for GST/HST are zero-rated, with exceptions such as services to individuals while they are in Canada.
Do I charge GST/HST on expenses I bill back to clients?
Usually yes. Rebilled travel and similar costs are generally part of your taxable fee. Only true disbursements paid as the client’s agent are passed through without tax.
Can consultants use the quick method?
Most can, if their annual taxable sales including tax are $400,000 or less. Bookkeepers, accountants, lawyers, tax preparers and financial or tax consultants cannot.
Should a new consultant register before reaching $30,000?
Often yes if clients are businesses, since they can claim the tax back and you recover tax on your costs. Less so if clients are individuals.
Sources: CRA, Place-of-supply rules; RC4058 Quick Method; RC4022. Checked October 2026. Zero-rating of services to non-residents has many specific exceptions; we list the common ones. Provincial sales tax on services in BC, Saskatchewan and Manitoba is not covered.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.