When you sell to other businesses, your invoice is not just a request for payment. It is the document your customer relies on to claim an input tax credit (ITC) for the GST/HST they paid you. If it is missing required information, their claim can be denied on audit, and a frustrated customer will come back to you for a corrected invoice.
The requirements depend on the amount
The Canada Revenue Agency sets out the required information in three tiers based on the total amount paid or payable:
| Invoice total | Information required |
|---|---|
| Under $100 |
|
| $100 to $499.99 |
Everything above, plus:
|
| $500 or more |
Everything above, plus:
|
Common gaps
- Missing or mistyped registration number. Double-check the full 15-character number, including the RT program identifier.
- No payment terms. "Net 30" or a due date satisfies the requirement and helps collections.
- Vague descriptions. "Services" alone may not identify the supply. Describe the work and, ideally, the period it covers.
- Wrong rate for the province. The rate generally follows the place of supply, which for services is usually based on where the customer is located. In Ontario the HST rate is 13%.
Beyond the minimum
A professional invoice usually goes further than CRA requires: a unique invoice number, your business address, a due date, the service period, and clear payment instructions (EFT details, e-Transfer address or cheque payee). None of these are required for ITCs, but each one reduces back-and-forth and gets you paid faster.
Keep copies. Keep your sales invoices with your books and records; CRA generally requires records to be retained for six years from the end of the tax year to which they relate.
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