Should I add GST/HST on top of my invoice or absorb it?

It depends on your client. B2B clients who are themselves GST/HST registered can claim the tax as an input tax credit — adding it on top costs them nothing net. B2C clients pay the full amount out of pocket — absorbing avoids sticker shock but cuts your take-home by the tax portion.

Can I keep charging the same price after I register for GST/HST?

Yes, but if your client doesn't pay more, the tax comes out of your price. The math: if your tax-inclusive price stays $100 and the rate is 13%, you keep $88.50 and remit $11.50 to CRA. Effectively a pay cut, but it preserves the headline rate.

Do I have to put GST/HST as a separate line item on the invoice?

CRA requires registrants to show the GST/HST amount or rate on invoices. For invoices of $30 or more, you must disclose the tax amount, rate, and your GST/HST registration number.

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Nunavut — add GST 5% on top, or absorb it?

Once you're registered for GST/HST in Nunavut, the next question is how to handle GST 5% on invoices. Adding it on top means your client pays more; absorbing it into your existing rate means you take home less. This calculator shows the dollar impact of each choice on your real invoice amount.

Invoice

Province

Your current invoice amount (CAD)

The rate you charge clients today, before any tax.

Approach

Add tax on top Absorb into existing rate

Add on top is the default for most B2B work — the client pays more, and if they're GST/HST registered they claim the tax back as an input tax credit (net zero). Absorb protects the client's headline price but cuts your take-home — common in B2C or fixed-quote work.

Which approach makes more sense?

The choice is mostly about who your clients are and how you've quoted the work.

If you work with GST/HST-registered businesses (B2B): add tax on top. Your client can claim it back as an input tax credit — they pay it on the invoice but recover it on their own remittance. The net cost to them is zero, and you protect your rate.

If you work with consumers or unregistered clients (B2C): absorbing is more common. They can't claim ITCs, so any tax added on top is a real price increase. Many freelancers in B2C work choose to swallow the tax to keep their headline price steady.

If you've quoted a fixed price in writing: check the contract. If it doesn't explicitly say "plus applicable taxes," you may be obligated to absorb. For future contracts, always write "plus applicable taxes" — it's standard, defensible, and removes ambiguity.

Common questions

What's the difference between GST and HST on an invoice?

Mechanically, none. HST is a single line that bundles the federal GST with the provincial portion in HST provinces (Ontario, NB, NL, NS, PE). GST-only provinces (AB, BC, MB, SK, QC, NT, NU, YT) show GST as 5%; in BC, MB, SK, you also charge PST as a separate line, and in QC you charge QST separately. From the invoice formatting perspective, you show whichever applies in your province with the rate and your registration number.

What if my client is in a different province?

For most services delivered to a Canadian recipient, the place-of-supply rules say you charge the rate of the recipient's province, not yours. So an Ontario consultant invoicing a Nova Scotia client charges 15% HST, not 13%. This is one of the most-missed details for freelancers who start working across provinces.

What about international clients?

Services exported outside Canada are generally zero-rated — you don't charge GST/HST, but the supply still counts toward your $30,000 threshold. You also still claim input tax credits on related Canadian expenses. Confirm the specifics of your client and service type with your accountant before treating an invoice as zero-rated.

Can I retroactively charge tax on past invoices?

Generally no, unless your contract allowed it. If you registered late and didn't collect tax on invoices that should have had it, you're on the hook to remit the tax out of your own pocket — backdated to your registration effective date. This is why catching the threshold early matters.

Track your collected tax automatically.

MapleBooks tracks GST/HST collected, possible input tax credits, and your net remittance per filing period — so you know exactly what to send CRA without spreadsheet gymnastics.

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Nunavut — add GST 5% on top, or absorb it?

Which approach makes more sense?

Common questions

Track your collected tax automatically.

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