GST/HST place of supply for service invoices in Canada

The supplier's home province does not automatically determine the GST/HST rate on every service invoice. Canada's place-of-supply rules first classify the supply, then locate it. For many general services, the recipient address obtained in the ordinary course of business is central; real-property, event, computer-related, and other services can use specific rules.

This page is a decision checklist for invoicing, not a substitute for a ruling. Confirm unusual, mixed, or high-value transactions with the CRA or a tax professional.

Start with the nature of the supply

• Is the invoice for a service, goods, real property, intangible property, or a combination?
• Does the service directly relate to real property or an event at a specific location?
• Is it a computer-related service used at one known ordinary location?
• Did you obtain a Canadian business or home address for the recipient in the normal course of business?
• Is the recipient outside Canada, and could an exported-service provision or exclusion apply?
• Are multiple deliverables actually separate supplies with different rules?

General service rule and recipient address

The CRA's current GST/HST rates and place-of-supply guidance explains how the applicable rate follows the province where a taxable supply is made. General rules for services commonly look to a Canadian address of the recipient that the supplier obtains in the ordinary course of business, subject to rule ordering and exceptions.

Capture the client's legal name and relevant address before finalizing the invoice. A phone area code, payment-card country, or project manager's temporary location is not a reliable substitute. Document why the address was used.

Specific rules can override the general result

A service in relation to real property generally follows the property's location. A location-specific event can follow where the service is primarily performed. Computer-related services can depend on where a final recipient ordinarily uses the service when the supplier has enough information; otherwise an address rule may apply. Transportation, telecommunications, customs brokerage, and other categories have separate rules.

Do not force every engagement through one “client province” field. If the work combines an on-site installation, shipped goods, and remote consulting, determine whether it is one compound supply or multiple supplies before applying tax lines.

Worked service examples

These are prompts, not automatic answers. The exact agreement and supply control. Quebec suppliers also need to consider QST place-of-supply rules with Revenu Québec rather than assuming the federal result resolves both taxes.

Invoice and record workflow

• Collect the customer's legal entity, billing address, service-use location, and property or event location when relevant.
• Classify the supply before selecting a rate.
• Record the rule and facts used for material or unusual invoices.
• Show GST, HST, PST, or TPS/TVQ lines separately and include registration numbers where required.
• Correct a wrong tax result with Credit Notes and Invoice Corrections in Canada instead of deleting history.
• For non-residents, continue with How to Invoice International Clients from Canada.

Do I always charge my own province's tax rate?

R: No. Place of supply depends on the type of supply and applicable rule; the supplier's location alone is not decisive for every service.

Which client address should I use?

R: Use the address identified by the applicable rule and obtained in the ordinary course of business. Keep evidence rather than choosing the lowest rate.

Does this also determine QST?

R: Not by itself. Quebec businesses should review Revenu Québec's QST rules for their supply as well as the federal GST/HST result.

What if an invoice used the wrong rate?

R: Preserve the original, calculate the difference, and issue the appropriate corrected document or credit/debit note with required references.