How to invoice as a freelancer
Updated · 3 min read
To invoice as a freelancer, send a numbered invoice that lists each piece of work with its hours or fixed price, adds GST/HST if you're registered, and states the total, the due date and how to pay. Send it the day you deliver the work.
That's the whole job. The rest of this guide covers the details that trip people up: hourly versus project billing, when you need to charge tax, and what to do when a client pays late.
What a freelance invoice needs
- Your business name (or your own name) and contact details
- The client's name and address
- A unique invoice number and the invoice date
- Each task or deliverable on its own line, with hours and rate or a fixed price
- GST/HST as a separate line, with your registration number, if you're registered
- The total, the due date and how to pay you
If your client is a business registered for GST/HST, they may need certain details on your invoice to claim the tax back. The Canada Revenue Agency sets those out by the size of the sale:
| Sale total | Must show |
|---|---|
| Under $100 | Your business name, the invoice date, and the total |
| $100 to $499.99 | All of the above, plus your GST/HST number and the GST/HST charged (or a note that prices include it), and which items are taxable if some aren't |
| $500 or more | All of the above, plus the client's name, a description of the work, and the payment terms |
Hourly or by project: how to show each
For hourly work, put each task on its own line. The quantity is the hours and the price is your rate, so 6.5 hours at $80 shows as 6.5 × $80 = $520. Group small tasks by type, like "Revisions" or "Client calls", rather than listing every 15 minutes.
For project work, use one line per deliverable with a quantity of 1. If the project is long, split it into milestones (for example 40% at the start, 40% at the draft and 20% on delivery) and send an invoice at each one.
You can mix both on the same invoice. A fixed price for the website and hourly lines for the extra changes the client asked for is common, and it makes the extras easy to see.
Do you need to charge GST/HST?
Not until you're registered. In Canada you must register once your taxable revenue goes over $30,000 in a single calendar quarter, or over the last four calendar quarters together. Below that you're a small supplier and registering is optional.
Once you're registered, charge the rate that applies to the sale (for services this generally follows where your client is), show it as its own line and include your GST/HST number. In this generator, pick your province under Tax and discount and the lines are added for you.
If you have a client outside Canada, the rules are different. Check with CRA or an accountant before charging or leaving off tax.
Payment terms that get you paid
Put a real due date on the invoice, not just "Net 30". Clients schedule payments by date. Net 14 is common for freelancers and gets money in faster than Net 30; for a first job with a new client, asking for a deposit up front is normal.
List every way the client can pay: e-Transfer address, bank details or a payment link. Each extra step between reading the invoice and paying it is a reason to put it off.
After you send it
Keep a list of what's been paid. In My invoices every saved invoice shows its status: blue while it's not due yet, amber when it's due within a week, red once it's overdue. When a client pays, mark it paid and download a receipt for them in one tap.
If an invoice goes overdue, send a short, polite reminder with the invoice attached and the amount and due date in the message. Most late payments are forgotten, not refused.
Questions
Can I send an invoice without a business registration?
Yes. A sole proprietor can invoice under their own name. You only need a GST/HST number on invoices once you're registered for GST/HST.
How should I number my freelance invoices?
Use one sequence that never repeats, like INV-0001, INV-0002. This generator numbers them for you and warns you if a number is already used.
Should I charge a late fee?
Only if it's in your terms before you do the work. If you want one, write it in the terms on every invoice, for example "2% per month on overdue balances".
Sources
- CRA: General Information for GST/HST Registrants (RC4022), input tax credit information requirements
- CRA: When to register for and start charging the GST/HST
This guide is general information, not tax or legal advice. Rules change; check with CRA or an accountant for your situation.