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Canada Tax Information

5% GST + 0-10% PST (varies)

GST is 5% federal. HST (13-15%) in some provinces. PST varies by province. Registration required above $30,000/year.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Canada

Business name
GST/HST number if registered
Client details
Invoice number
GST/HST/PST breakdown
Total in CAD

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Net 30Net 15Due on Receipt2/10 Net 30

Payment Methods in Canada

Interac e-TransferBank TransferChequeCredit CardPayPal

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Canada?

Canada has 5% GST + 0-10% PST (varies). GST is 5% federal. HST (13-15%) in some provinces. PST varies by province. Registration required above $30,000/year.

What payment methods are common for contractors in Canada?

Common payment methods in Canada include: Interac e-Transfer, Bank Transfer, Cheque, Credit Card, PayPal. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Canada?

Your invoice should include: Business name, GST/HST number if registered, Client details, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What taxes apply?

GST (5%) applies federally. Some provinces have HST (13-15%) or separate PST.