How to Charge GST/HST
Which rate to charge by province, the place-of-supply rules, zero-rated vs exempt, and what your invoices must show.
The short version
- Once registered, you charge GST/HST on taxable sales at the rate of the province where the supply is made, which is usually where your customer is, not where you are.
- Goods: the rate where they're delivered. Services: generally the province of the customer's address. Services to real property (renovations, cleaning a building): where the property is.
- Zero-rated supplies (exports, basic groceries, many services to non-residents) are charged at 0%, and you still claim input tax credits. Exempt supplies get no tax and no input tax credits.
- Your invoices must show either the tax charged or a statement that the price includes it, plus your GST/HST number on invoices of $100 or more, and more details at $500 or more.
- Charging the wrong rate is your problem, not your customer's: CRA collects the correct amount from you.
How to Charge GST/HST
Getting a GST/HST number is the easy part. Charging the right amount, to the right customer, at the right rate, on a proper invoice is where small businesses lose money, usually by undercharging out-of-province customers and paying the difference themselves in an audit. Here's how to get it right on every invoice.
The Rates
Rate history and the provincial sales taxes are on GST/HST rates by province. The GST/HST calculator does the arithmetic.
| Province or territory | Rate |
|---|---|
| Alberta, British Columbia, Manitoba, Saskatchewan, Yukon, Northwest Territories, Nunavut | 5% GST (BC, Manitoba and Saskatchewan also have provincial sales tax, collected separately) |
| Ontario | 13% HST |
| Nova Scotia | 14% HST |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST |
| Quebec | 5% GST, plus QST administered by Revenu Quebec (not covered here) |
Where Is the Sale "Made"? The Place-of-Supply Rules
| What you sell | Rate to charge | Example |
|---|---|---|
| Goods | Where they're delivered or made available | An Alberta shop ships a desk to Halifax: 14% HST |
| Services, general rule | Province of the customer's home or business address that you obtain in the normal course | An Ontario designer invoices a client in Calgary: 5% GST |
| Services related to real property | Where the property is | A Manitoba contractor renovates a cottage in Ontario: 13% HST |
| Personal services done in person (haircuts, massage, training) | Where performed, if 90% or more is in the customer's presence | A trainer in Ottawa with a Gatineau client: Ontario rate |
| Services and intangibles to non-residents | Often zero-rated (0%), with conditions | An Ontario consultant invoices a US company: often 0% |
The full rules have more special cases (transportation, telecommunications, admissions, intangible property). If most of your customers are in your province, the default is easy. If they aren't, set your invoicing system to charge by customer address.
Charging the right GST/HST on every invoice?
Describe what you sell and where your customers are. The SmartFile tells you the rate for each case, flags zero-rated and exempt sales, and checks your invoice template against CRA's requirements.
Taxable, Zero-Rated or Exempt?
| Type | You charge | Input tax credits | Examples |
|---|---|---|---|
| Taxable | GST/HST at the province's rate | Yes | Most goods and services |
| Zero-rated | 0% | Yes | Basic groceries, prescription drugs, exports, many services to non-residents |
| Exempt | Nothing | No | Long-term residential rent, most health care, child care, financial services, music lessons |
What Your Invoice Must Show
| Invoice total | Must include |
|---|---|
| Under $100 | Your business name, the date, the total |
| $100 to $499.99 | All of the above, plus the GST/HST charged (or that the price includes it, with the rate), and your GST/HST number |
| $500 or more | All of the above, plus the customer's name, a description of what you sold, and the payment terms |
Show the tax separately whenever you can; business customers need it to claim their input tax credits. If you quote prices with tax included, say so on the invoice. The receipt rules for your own purchases are the mirror image; see recordkeeping requirements.
Common Charging Mistakes
- Charging your own province's rate to customers in other provinces.
- Charging GST/HST on exempt sales (and having to refund it), or not charging on taxable ones (and paying it yourself).
- Forgetting tax on extras: shipping, delivery and handling are usually taxed at the same rate as the item.
- Not charging on deposits applied to a sale, or on the sale of business equipment.
- Assuming a cash sale changes anything; see cash income and taxes.
Prices, Discounts and Rounding
Tax applies to the price after discounts given at the time of sale. Coupons, trade-ins and volume rebates have their own rules. Round the tax on each invoice to the nearest cent. When you sell to a customer who is exempt (for example, some First Nations purchasers with status cards in qualifying circumstances, or certain government bodies), keep the documentation that supports not charging.
Not registered yet? See do I need a GST/HST number? and how to register. Freelancers with clients in several provinces or abroad should also read freelancer taxes, and online sellers online seller taxes. Everything else is on the GST/HST guide.
Charging GST/HST Questions
Which GST/HST rate do I charge an out-of-province customer?
Generally the rate of the province where the supply is made. For goods, that is where they are delivered. For most services, it is the province of the customer’s address that you obtain in the normal course of business.
Do I charge GST/HST to customers outside Canada?
Exports of goods and many services to non-residents are zero-rated, so you charge 0% but can still claim input tax credits. Conditions apply.
What must a GST/HST invoice show?
For $100 or more, your business name, the date, the total, the GST/HST charged or a statement that it is included, and your GST/HST number. For $500 or more, also the customer’s name, a description and the payment terms.
Do I charge GST/HST on shipping?
Usually yes. Shipping and delivery charges on a taxable sale are generally taxed at the same rate as the item.
What if I charged the wrong rate?
You are responsible for the correct amount. If you undercharged, CRA can assess the difference. If you overcharged, you can refund or credit the customer and adjust your return.
Sources: CRA, GST/HST and place-of-supply rules; Input tax credits (invoice requirements); RC4022 General Information for GST/HST Registrants. Checked October 2026. Place-of-supply rules are simplified; special rules apply to many specific services.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.