Introduction
If you provide services in Canada, you might be wondering whether you need to charge GST or HST.
The answer depends on your registration status and your client’s location.
Are Services Taxable in Canada?
Yes — most services in Canada are taxable.
This includes:
- Freelance work
- Consulting
- Design and development
- Marketing services
When Do You Charge GST/HST?
You only charge tax if you are registered for GST/HST.
This typically happens when:
- You exceed $30,000 in revenue
- You voluntarily register
What If You’re Not Registered?
If you're not registered:
- You do not charge tax
- You cannot claim input tax credits
Client Location Matters
You charge tax based on where your client is located, not where you live.
- Client in Ontario → charge HST
- Client in Alberta → charge GST
Common Mistakes
- Charging tax without being registered
- Not charging tax after crossing $30,000
- Using the wrong provincial rate
How Lunio Helps
Lunio automatically applies the correct tax rates based on your client’s location, so you don’t have to guess.
Final Thoughts
Most services in Canada are taxable — but only if you're registered.
Understanding when to charge tax helps you stay compliant and avoid costly mistakes.
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