Just opened up a new business? Not sure how to create sales invoices for your customers?
In this short post, we’re going to provide an overview of information on what needs to be detailed on sales invoices in Canada.
In Canada, you must inform your customers if GST/HST applies to their purchases (1). “For taxable supplies, you have to show:
- that the total amount paid or payable for a supply includes the GST/HST;
- the amount paid or payable for the supply and show the amount of the GST/HST payable on the supply separately; or
- the GST/HST rate that applies to the supply” (1)
For information on what is taxable and what is exempt, click here.
You also need “to give customers who are GST/HST registrants specific information on the invoices, receipts, contracts, or other business papers that you use when you provide taxable goods and services. This information lets them support their claims for input tax credits (ITCs) or rebates for the GST/HST you charged” (1).
“If your customers ask you for an invoice or receipt to claim an ITC, depending on the amount of the sale, you are required by law to give them [specific] information” (1). Click here and scroll down to the “Information requirements for sales invoices” chart for a clear and helpful guide on these requirements.
For all other information on the subject of invoicing, review this webpage provided by the Canada Revenue Agency.
(1)- Invoicing requirements from the Canada Revenue Agency:
Links to More Information
Check out some of our past posts on GST/HST, including:
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