How to Invoice US Clients from Canada: GST/HST Rules, Currency, and Getting Paid
Canadian freelancers: learn whether to charge GST/HST on US invoices, how to handle USD vs CAD, track exchange rates for CRA, and which payment methods work best.
You land a US client. They ask you to send an invoice and suddenly you're Googling "do I charge GST to Americans" at midnight. Every Canadian freelancer who needs to invoice US clients from Canada hits this wall. The short answer: no, you don't charge GST/HST. The long answer takes about four minutes to read.
- Services supplied to US-based clients for use outside Canada are zero-rated exports — no GST/HST on the invoice.
- You still register for GST/HST once revenues cross $30,000 CAD. You just charge 0% to US clients.
- Invoice in USD or CAD — both are legal, but CRA wants everything reported in CAD using the Bank of Canada rate.
- Wire transfers, Stripe, and Wise are the strongest payment options. PayPal works but quietly eats your margin.
- If a US client asks for a W-8BEN, fill it out. It protects you from unnecessary US tax withholding.
Do You Charge GST/HST to US Clients? (The Export Rule, Explained Simply)
Under Canada's Excise Tax Act, services supplied to non-residents for consumption outside Canada are classified as zero-rated supplies (Schedule VI, Part V). Tax language for: the GST/HST rate is 0%. You don't collect it. You don't remit it on that invoice.
Consider a Toronto UX designer who billed a San Francisco startup $4,500 USD for a redesign project. First instinct: add 13% Ontario HST. That would have been wrong — and awkward to explain later. Because the service was delivered remotely to a US company with no Canadian presence, it qualifies as a zero-rated export. The invoice line reads: HST: $0.00.
One caveat worth knowing: if your US client has a permanent establishment in Canada — a branch office, a warehouse, a registered entity — the export exemption may not apply. That situation is uncommon for most freelancers, but don't assume.
Registration is still required once your worldwide revenue hits $30,000 CAD in any 12-month period. Being registered doesn't mean you charge US clients tax. It means you're in the system — and you can claim input tax credits on your Canadian business expenses. That alone often makes early voluntary registration worth it.
USD vs CAD: Which Currency to Invoice In (and How CRA Wants You to Track It)
Most Canadian freelancers billing US clients invoice in USD. US companies expect it, it sidesteps conversion conversations, and a weak Canadian dollar can feel like a bonus. Both currencies are legal. The CRA doesn't care which one appears on your invoice — only what you report.
Regardless of invoice currency, you must report all income in Canadian dollars on your tax return. Use the Bank of Canada exchange rate on the transaction date — or the annual average rate. Bookmark bankofcanada.ca now.
Whatever rate you use, document it. A simple spreadsheet works: invoice date, USD amount, CAD rate used, CAD equivalent. The Bank of Canada publishes daily rates going back years — free, authoritative, and exactly what CRA auditors expect to see.
The real risk with USD invoicing is FX exposure. Invoice $5,000 USD today at 1.36, wait 60 days for payment while the rate slips to 1.30, and you've quietly lost roughly $300 CAD. For high-volume USD work, either build a buffer into your rates or convert promptly on receipt.
Best Ways to Get Paid from US Clients — and the W-8BEN Form Decoded
Not all payment methods are equal when money crosses the border. Here's the honest breakdown:
| Method | Fees | Speed | Best For |
|---|---|---|---|
| Wire Transfer | $15–$30 flat | 1–3 days | Large invoices ($2,000+) |
| PayPal | 2.9%+ + FX spread | Instant | Small or one-off invoices |
| Stripe | 2.9% + 30¢ | 2 days | Professional invoicing workflow |
| Wise (honorable mention) | ~0.5–1% FX | 1–2 days | Best FX rates, mid-market pricing |
Stripe is the strongest default for freelancers who want professional invoice delivery built in. Wise earns its setup time if you're doing serious USD volume — the FX savings compound over a year.
"The W-8BEN doesn't mean you owe US tax — it means the US client is not required to withhold US tax from your payment."
On the W-8BEN: Larger US companies often ask for IRS Form W-8BEN before issuing payment. Normal. It certifies you're a non-US person, and under the Canada-US Tax Treaty, most professional service income isn't subject to US withholding tax. Fill it out once, send it back, get paid in full. No US tax filing obligation. No ongoing paperwork. It's essentially a five-minute "I'm Canadian" declaration.
What to Put on Your Invoice When Billing a US Client
A clean cross-border invoice needs eight fields. Nothing more:
- Your name or business name + Canadian address
- Your GST/HST registration number (if registered)
- Client's US name and address
- Invoice number and date
- Description of services rendered
- Amount in agreed currency — state USD or CAD explicitly
- Tax line: GST/HST $0.00 — Zero-rated export supply (ETA Schedule VI, Part V)
- Payment terms and method (e.g., Net 30, wire to account #XXXX)
Always spell out the zero-rated reason on every invoice — "Zero-rated export supply (ETA Schedule VI)". One line. Five seconds. It signals to a CRA auditor that you understood the rule, not that you forgot to charge tax. That distinction matters.
You can voluntarily register for a GST/HST number before hitting the $30,000 CAD threshold. Early registration lets you claim input tax credits on business expenses — software, home office costs, equipment — which can be worth more than expected.
Zero-rate your GST/HST. Pick a currency and document the exchange rate. Choose a payment method that doesn't quietly eat 3% of every invoice. Add the zero-rated export note to every invoice you send. That's the whole framework. You're not filing US taxes. You're not charging Canadians tax to Americans. You're running a clean, compliant cross-border business.
Frequently Asked Questions
Do I need a GST/HST number to invoice US clients from Canada?
Not if your total worldwide revenue stays under $30,000 CAD across the past four consecutive quarters — you're a "small supplier" and registration is optional. Cross that threshold and registration is mandatory. Either way, you charge US clients 0% under the export rule. Your GST number on the invoice simply confirms to CRA that you know what you're doing.
Should I invoice my US client in USD or CAD?
Either is legal. USD is more common and generally preferred by US clients who don't want to handle conversion. Whichever you choose, CRA requires you to report the CAD equivalent using a documented Bank of Canada exchange rate. The main trade-off with USD: FX risk. Rates shift, payment delays cost you on conversion.
What is a W-8BEN form and do I have to fill one out?
Form W-8BEN is an IRS document certifying you're a non-US person receiving income from a US source. Under the Canada-US Tax Treaty, most professional service income isn't subject to US withholding tax — and this form is how your client proves it to their accountants. You don't owe US tax just because you signed one. It takes about five minutes and unlocks full payment.
Cross-border invoicing looks complicated until you do it once. The export exemption is clear, the paperwork is minimal, and a well-structured invoice protects you in every direction.
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Canadian freelancers working with US clients pay no GST/HST on those invoices — the export exemption is straightforward and legal. Include your GST number if registered, invoice in USD or CAD (your call), sign a W-8BEN when asked, and keep your exchange rate records clean. One solid invoice template handles all of it.