GST/HST place of supply rules in Canada answer a simple but important question: when you invoice a client in another province, which GST/HST rate do you charge? For freelancers and sole proprietors, the rate is often based on where your customer receives the service, not where you sit with your laptop.
That means an Alberta consultant may charge 13% HST to an Ontario client, while an Ontario designer may charge only 5% GST to a client in Alberta. The wrong rate can leave you short at filing time or create awkward credit notes for clients, so it is worth getting the basics right.
GST/HST place of supply rules in Canada: the practical rule for services
For many common services, the GST/HST rate follows the province or territory of the recipient. In plain English, look at the client's usual business address, billing address, contract address, or the place where the service is primarily connected. If the client is in an HST province, you generally charge that province's HST rate. If the client is in a GST only province or territory, you generally charge 5% GST.
Example: you are a freelance writer in British Columbia and you write website copy for a business in Toronto. If the supply is made in Ontario under the place of supply rules, you charge 13% HST, not 5% GST. Your physical location in BC does not automatically control the rate.
Common GST/HST rates by client province
- Ontario: 13% HST
- Nova Scotia, New Brunswick, PEI, Newfoundland and Labrador: 15% HST
- Alberta, Yukon, Northwest Territories, Nunavut: 5% GST
- British Columbia, Saskatchewan, Manitoba: 5% GST federally, with separate PST rules to check
- Quebec: 5% GST, with QST handled separately through Revenu Québec where applicable
If you need a refresher on how these sales taxes fit together, start with our guide to PST vs GST vs HST.
What if the client has offices in multiple provinces?
Use the best evidence you have for where the recipient of the supply is located. For small freelance jobs, that is often the address on the contract, statement of work, purchase order, or invoice. If a national company has a head office in Ontario but your agreement is with its BC branch and the work is for that branch, the facts may point to BC.
Keep the address evidence with your invoice records. If a client later asks why you charged a particular rate, or the CRA reviews the return, you want the reasoning to be obvious from the paperwork.
Special cases that do not follow the simple rule
Place of supply rules get more specific when your work is tied to a particular location, asset, event, or type of customer. Be extra careful with:
- Services related to real property, such as a building or construction project
- Services performed on goods located in a specific province
- In-person events, admissions, training, or performances
- Transportation, travel, or accommodation services
- Digital products and platform sales where customer location evidence matters
For digital products, the same customer-location idea is often important. Our article on GST/HST on digital products in Canada explains how this shows up for downloads, courses, templates, and software.
Do out-of-province sales count toward the $30,000 threshold?
Yes, if they are taxable supplies. The small supplier threshold is based on your total worldwide taxable supplies over the rolling CRA period, not only sales in your home province. An Ontario freelancer with Alberta, BC, and Nova Scotia clients still combines those taxable sales when tracking whether they have crossed $30,000.
This is exactly the kind of rolling calculation HST Hero was built for. Add your revenue as it comes in and it shows where you stand against the GST/HST threshold before registration becomes urgent. For the detailed threshold mechanics, see how the GST/HST threshold works.
How to invoice when rates vary by province
Your invoice should show the client's name and address, your GST/HST number if you are registered, the taxable amount, the rate charged, and the GST/HST as a separate line item. If you bill clients in multiple provinces, do not use one default rate for everyone. Set the rate invoice by invoice based on the place of supply.
A simple note such as “HST charged at 13% based on recipient address in Ontario” can help when the client's head office, billing contact, and work location differ.
The bottom line
- For many services, charge GST/HST based on the client's province
- Your own province does not always determine the rate
- Keep address and contract evidence with your invoice records
- Real property, goods, events, travel, and digital sales may need extra care
- All taxable out-of-province sales still matter for the $30,000 threshold
If you sell across Canada, make place of supply part of your invoicing checklist. Confirm the client location, apply the correct rate, and track the sale in your GST/HST records while the details are still fresh.