How to invoice when you're not registered for GST/HST (Canada)

If your business is small, you may not be registered for GST/HST at all. The CRA calls you a small supplier, and that's fine: you still send invoices, you just leave GST/HST out of them. What trips people up is knowing exactly when the $30,000 limit bites, and the fact that a provincial sales tax can apply even when GST doesn't.

This guide explains what a plain invoice needs when you're not registered, how the small supplier test works, and what changes when you register. The free invoice generator switches GST/HST off everywhere when you choose "Small supplier".

What to put on your invoice

Number your invoices in one unbroken sequence (INV-0001, INV-0002) so each one is unique and easy to find later.

If you have a Business Number for something else, such as payroll or a corporation, don't print it as if it were a GST/HST number. Your clients can't claim input tax credits on an invoice that carries no GST/HST.

The $30,000 small supplier test

You're a small supplier while your taxable sales are $30,000 or less in both of these tests:

The single-quarter test is the one that catches people: a large contract can push you over in one go, and GST/HST applies from that sale. RC4022 explains what counts towards the total and the exact dates for the four-quarter test, so check it as you get close.

An example invoice

A freelance photographer in Alberta who is not registered bills a client:

Under the total, add how to pay. For Interac e-Transfer, give the email address or mobile number. If autodeposit isn't on, Invoice Native adds "Send the security answer separately." For direct deposit, give your institution number (3 digits), transit number (5 digits) and account number. Net 30 is the most common term, and it's Invoice Native's default.

Voluntary registration

You can register for GST/HST even under $30,000. Once you do, you:

• charge GST/HST on your taxable sales at the rate for your client's province;
• print your GST/HST number on every invoice;
• can claim input tax credits for the GST/HST you pay on business costs;
• file GST/HST returns.

Some businesses register so their invoices look like those of larger competitors, or because they buy a lot of taxed equipment. Others stay unregistered because their clients are consumers who can't claim the tax back. It depends on your situation, so talk to an accountant before you decide. When you register, switch Invoice Native to Registered and enter your number; see what a GST/HST invoice must include.

Provincial sales tax has its own thresholds

Not being registered for GST/HST doesn't mean you never charge a provincial sales tax:

• Quebec (QST): the same $30,000 small supplier rule as GST/HST.
• British Columbia (PST): the threshold is much lower. Some small sellers with $10,000 or less in sales don't have to register, but the conditions are narrower than the federal test, so read PST 001.
• Manitoba (RST): under $30,000 a year, registration is not required.
• Saskatchewan (PST): check Saskatchewan's own registration rules.

So a BC seller can be registered for PST but not for GST. In that case the invoice has a PST line on the items PST applies to, and no GST. See PST on services for which services carry it.

Common mistakes

• Adding GST because clients expect it. If you're not registered, you can't charge it.
• Printing "GST: $0.00" or a Business Number that looks like a GST/HST number.
• Missing the quarter test on a big contract that takes you over $30,000 in one go.
• Forgetting provincial tax when you're registered for PST but not GST.

Checklist

• ✅ Title "Invoice", with a unique number
• ✅ Your name, and your trade name if you use one
• ✅ Your client's name and address, dates, description and amounts
• ✅ No GST/HST line, rate or number anywhere
• ✅ Payment details: Interac e-Transfer or direct deposit
• ✅ An eye on your sales against $30,000 per quarter and per four quarters