CIS Invoice Template - Canada

A construction invoice must include your business name and address, the client's name and address, a unique invoice number, the invoice date, a detailed description of work performed or materials supplied, quantities and rates, subtotal, applicable taxes (HST/GST/PST), payment terms, and your payment instructions. The CRA expects invoices to clearly distinguish between labor and materials when applicable. Include the invoice number and date even if you use manual numbering—these fields help with bookkeeping and tax filing. If you're invoicing across provinces, clearly state which province the work was completed in, as this affects tax calculations.

HST (Harmonized Sales Tax) is applied to most construction services and materials in participating Canadian provinces—Ontario, Nova Scotia, New Brunswick, and Newfoundland and Labrador. Calculate HST by multiplying your subtotal by 15%, then add it to the invoice total. The CRA registers HST-eligible contractors, and you can claim input tax credits on materials and subcontractor invoices you receive. If you're not HST-registered or operate in non-harmonized provinces, you may charge GST (5%) plus provincial sales tax separately. Document your HST registration number on every invoice to remain compliant.

Industry standard payment terms for construction invoicing are Net 30 days, though Net 15 or Net 45 are common depending on your agreement with the client. Many construction companies negotiate retention or holdback clauses—typically 5-10% of invoice value withheld until project completion. Specify your payment method (e-transfer, check, bank deposit) and any late payment penalties or interest charges allowed under your provincial lien laws. Clear payment terms prevent disputes and align with professional construction industry practices. Always confirm payment expectations in your contract before issuing the first invoice.

Yes, but you must adjust tax calculations for each province. HST applies in Ontario, Nova Scotia, New Brunswick, and Newfoundland and Labrador at 15%. Other provinces use GST (5%) plus their own provincial sales tax (PST or QST). Clearly note the province where work was completed—this is crucial for tax compliance and CRA audits. Your business address remains the same, but the invoice must show the work location and applicable tax rate for that province. If you regularly work across multiple provinces, create invoice variations or use conditional tax fields to ensure accuracy.

Subcontractor invoices must include the general contractor's legal business name and project address, not necessarily the property owner's address. Include your CRA business number and GST/HST registration (if applicable), detailed breakdown of work and materials supplied, invoice date, and payment terms. Reference the contract number or work order if provided. General contractors often require subcontractor invoices within 10-15 days of work completion to meet their own payment schedules. Be aware that holdback or retention clauses are standard in construction contracts—typically 5-10% may be withheld until project completion or warranty period ends.

Keep invoices, supporting contracts or work orders, proof of delivery (for materials), time sheets or project logs (for labor), and payment receipts for a minimum of six years for CRA audits. Maintain separate records if you claim input tax credits on materials and subcontractor services. For lien law compliance (important in Canadian construction), document the work location, property owner's name, and contractor details. If disputes arise over unpaid invoices, these records support your legal position. Digital copies are acceptable, but ensure they're organized by project and date for quick retrieval during tax season or disputes.

Yes—separating materials from labor is best practice in construction invoicing. This breakdown helps clients understand cost allocation and supports your HST input tax credit claims on purchased materials. Labor-only services may have different tax treatment depending on your business structure and province. Clients also appreciate seeing itemized costs, which builds transparency and trust in your pricing. When invoicing a general contractor, they may require this separation to reconcile their project budget and manage subcontractor payments. Include material costs with dates purchased and labor with hours or quantity of work performed.

First, send a friendly payment reminder 5-7 days after the due date. Canadian construction law provides lien rights—you can register a construction lien against the property if payment isn't received. Before pursuing legal action, review your contract for dispute resolution clauses or payment schedules. Document all communication attempts via email. If significant time has passed, consider charging the late payment interest permitted under your provincial lien laws. Retain all original invoices, contracts, and delivery receipts to support any legal claim. Unpaid invoices can be written off as bad debts for tax purposes, but only after genuine collection efforts.