Hourly Invoice Template - Canada

If you're registered for GST/HST and have reached the registration threshold ($30,000+ in revenue over four consecutive quarters), you must charge GST (5%) federally or HST (13-15% depending on province). Self-employed individuals below the threshold can choose voluntary registration. Ontario, Quebec, and Atlantic Canada use HST; other provinces use GST plus provincial sales tax. Your invoice must clearly state the tax rate applied and show your GST/HST registration number. Consult the CRA website for your specific province.

The CRA expects you to maintain detailed time records supporting every hourly invoice, including dates worked, hours logged, and descriptions of tasks completed. This documentation should be kept for six years in case of audit. A simple timesheet or log file is sufficient—it doesn't need to be complex. Many Canadian freelancers use time-tracking software to automatically generate records. This evidence proves the work actually occurred and the hours billed are accurate, protecting both you and your client during any tax review.

Most Canadian invoices round partial hours to the nearest quarter-hour (15-minute increments) or half-hour. Some professionals bill in tenths of an hour for consistency with time-tracking software. Your approach should be transparent on the invoice and agreed upon with the client beforehand. For example, 2 hours 40 minutes could be billed as 2.75 hours or 3 hours depending on your policy. Consistency matters more than the method—apply the same rounding rule across all invoices and clients. Document your rounding approach in your service agreement to avoid disputes.

Yes, and this is common for consultants and technical professionals with varying skill levels. List each service type separately with its own hourly rate, number of hours, and subtotal. For example, web development at $95/hour and quality assurance testing at $75/hour appear as distinct line items. This transparency helps clients understand value delivered and makes the invoice more professional. Ensure your invoice template has space for multiple rates, which this Canadian hourly template supports. Clear itemization also simplifies bookkeeping and GST/HST calculations.

Create separate line items: one for the fixed retainer amount and another for hourly billing. For example, "Monthly retainer (January)" as a fixed amount, then "Additional hours beyond retainer" billed at your hourly rate. Clearly communicate your retainer structure in the invoice notes—state whether hours above the retainer cap are included or billed separately. Some retainers cover a maximum number of hours; others include unlimited access at reduced rates. Spell out this distinction on the invoice to prevent billing confusion. A detailed summary helps clients understand what they paid for.

Rates vary significantly by profession and experience. Software developers and technical consultants in Canada typically charge $75–$150+ per hour; designers $50–$120; business consultants $100–$300+; and trades specialists (plumbing, electrical) $75–$150. Factors affecting rates include years of experience, geographic location (Toronto and Vancouver command higher rates), specialization, and client type (corporate vs. startup). Research your local market and compare your qualifications to similar professionals. Starting rates are typically lower, with increases as you build reputation. Your invoice should reflect the value you deliver, not just time spent.

Provide enough detail for the client to recognize the work performed without overwhelming them with granular minutiae. Instead of "Consulting—8 hours," write "Web Development Consultation—Database architecture planning and technical specification review—8 hours." This level of specificity justifies your rate, supports HST/GST claims, and provides documentation for CRA audits. Professional service descriptions reassure clients the time was used productively. Keep descriptions concise—2–10 words is typically sufficient—and consistent across your invoices. Vague descriptions raise red flags with clients and tax authorities.

Net 30 (payment due within 30 days) is the Canadian business standard, though Net 15 or Net 45 are also acceptable depending on client relationship and industry. Specify your payment terms clearly on the invoice. Many Canadian freelancers require faster payment—Net 10 or even payment upon receipt—especially for new or high-risk clients. Include your preferred payment methods (bank transfer, e-transfer, credit card) and add a late payment clause if needed. Clear payment terms reduce cash flow delays and billing disputes. Include late payment interest rates if applicable, though ensure they comply with provincial contract laws.