Freelancer Selling Services Across Provinces: Which Tax Rate to Charge?
The CRA rule most freelancers don’t know — and how to apply it in 60 seconds.
The short answer
It depends on your client's address, not yours
When you sell services to a client in another province, you charge the tax rate for your client’s province — not your own. This is called the “place of supply” rule. For services, the CRA says the place of supply is the province of the recipient’s address that you have on file.
So if you’re a freelance developer in British Columbia invoicing a client in Ontario, you charge Ontario’s 13% HST — not BC’s 5% GST. Your location as the seller is irrelevant to which rate you collect.
There’s one important catch: you must actually be registered for GST/HST before you’re required to charge any tax at all. If your total taxable revenues are under $30,000 over four consecutive calendar quarters, you’re a “small supplier” and charging tax is optional (though you can register voluntarily).
How it works
The place-of-supply rule for services
The legal basis for this is CRA Technical Bulletin B-103, which sets out the place-of-supply rules for all inter-provincial transactions. For services, the primary rule (Section 13 of Division 3 of Part 1 of the Regulations) is:
The rule, in plain English:
- If you have your client’s address on file (which you almost certainly do — it’s on their invoice or contract), tax is based on that province’s rate.
- If you have multiple addresses for the client (e.g., billing address in Ontario, office address in Quebec), use the address most closely connected with the supply — typically the address where they contracted with you from.
- If you genuinely have no address on file (rare for B2B work), the fallback is where you primarily perform the service.
B-103 includes a useful example: a Quebec-based web designer does all their work in Quebec but invoices a client in Ontario. The place of supply is Ontario. The designer charges 13% HST, even though they never set foot in Ontario. The CRA is explicit: where you perform the work is irrelevant when you have the client’s address.
Note that there are exceptions for specific service types (personal services, services to physical property, legal services, real estate services). The general rule above covers the vast majority of freelance and consulting work — writing, design, development, marketing, coaching, photography, and similar knowledge-work services.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, client province, and service type — with government sources cited.
Use the free calculatorReal-world examples
| Scenario | Rate to charge | Why |
|---|---|---|
| ON freelancer → BC client | 5% GST | BC is not an HST province. Client is outside the HST zone — charge federal GST only. |
| BC freelancer → ON client | 13% HST | Ontario is an HST province. Client's address governs — charge Ontario HST rate. |
| AB freelancer → QC client | 5% GST + 9.975% QST | Quebec is not an HST province. If registered for QST, you must collect both. If not yet registered for QST, GST only until you hit the $30K threshold. |
| NS freelancer → AB client | 5% GST | Alberta has no provincial sales tax. Only federal GST applies regardless of where you are. |
| ON freelancer → ON client | 13% HST | Same-province transaction. Ontario HST applies straightforwardly. |
A note on dollar amounts: On a $5,000 invoice to an Ontario client, the difference between charging 5% GST and 13% HST is $400. On $50,000 of annual billings to Ontario clients, that’s $4,000 in tax you may have been under-collecting and would owe the CRA out of pocket if you file your return incorrectly.
What most people get wrong
Common mistakes freelancers make
Charging your own province's rate to everyone
The most common error. If you're in Ontario and you charge 13% HST to a client in Alberta, you've overcharged them — Alberta has no provincial sales tax, only 5% GST. If you're in BC charging 5% GST to a client in Ontario, you've undercharged — and you'll owe the difference to the CRA when you file.
Assuming you don't charge tax because you're "small"
The $30,000 small supplier threshold is cumulative over four consecutive calendar quarters. If you invoice $8,000 per quarter across four clients, you hit $32,000 in year one and must register. Many freelancers cross this threshold in their second year without realizing it. You have 29 days from the day you exceed $30,000 to register.
Not collecting QST when billing Quebec clients
Quebec is not an HST province. If your Quebec client's address is on your invoice and your revenues exceed the threshold, you're required to register for QST separately with Revenu Québec (not the CRA) and collect both 5% GST and 9.975% QST. Many out-of-province freelancers don't realize QST is a separate registration.
Thinking "where I do the work" determines the rate
It doesn't — at least not as the primary rule. You could do all your work at a coffee shop in Nova Scotia and invoice a client in Alberta; you charge 5% GST (Alberta's rate), not 15% HST (Nova Scotia's rate). The client's address you have on file is what matters.
Ignoring registration entirely until an audit
The CRA can assess back taxes, penalties, and interest if you should have been collecting GST/HST and weren't. Voluntary disclosure is available, but it's far less painful to register on time. If you're unsure whether you're over the threshold, register voluntarily — there's no downside to being registered.
Summary
Key takeaways
Charge the tax rate for your client's province — not yours.
The legal basis is the "place of supply" rule (CRA Technical Bulletin B-103, Section 13).
You need the client's address on file. For most freelancers, this is the billing address on the invoice.
Register for GST/HST once your revenues exceed $30,000 over four consecutive quarters (or in a single quarter).
Quebec requires a separate QST registration with Revenu Québec — it's not automatic when you register with the CRA.
Alberta, Northwest Territories, Nunavut, and Yukon have no provincial sales tax — 5% GST only.
Ontario, New Brunswick, Newfoundland, Nova Scotia, and PEI use HST (combined rate on one line). All others use GST + separate provincial tax.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, client province, and service type — with government sources cited.
Use the free calculatorGovernment sources
Sources
Every claim in this article traces back to one of the following official government publications. If a rate or rule has changed since this was written, the source page will have the current version.
- GST/HST — which rate to charge
Canada Revenue Agency
- Place of supply — practical guide
Canada Revenue Agency
- Small supplier threshold — Guide RC4022
Canada Revenue Agency
- QST — basic rules for applying GST/HST and QST
Revenu Québec
Keep reading
Related guides
Place of Supply Rules in Canada: The Complete Guide
Deep dive into how the CRA determines which province's tax rate applies to every type of transaction.
Quebec QST Explained: What Non-Quebec Businesses Need to Know
QST has quirks that catch people off guard — including how it's calculated and who administers it.
GST/HST on Consulting Services: A Plain-English Guide
When you must charge, which rate applies, and the registration threshold you need to know.
Disclaimer
TaxMapCA provides tax information, not tax advice. This article is for general informational purposes only and does not constitute legal or accounting advice. Tax rules change — always verify rates and rules against the government sources linked above before making business decisions. TaxMapCA is not affiliated with or endorsed by the Canada Revenue Agency, Revenu Québec, or any provincial tax authority. For complex situations, consult a qualified CPA or tax professional.