Deposit Invoice Template Canada — How to Request an Upfront Payment
A deposit invoice is a request for partial payment before you begin work. It is different from a final invoice (which requests payment upon completion) and different from a progress invoice (which bills for work already done). A deposit secures the booking, motivates client commitment, and protects you from cancellations or non-payment after you have already allocated time to a project.
What Is a Deposit Invoice?
A deposit invoice — sometimes called a booking retainer invoice or advance payment invoice — requests a percentage of the total project fee upfront. The deposit is credited against the final invoice when the work is complete. Key characteristics:
- Sent before work begins, usually at the time of contract signing
- Typically 25–50% of the total project value
- Non-refundable (in most standard freelance agreements)
- Referenced on the final invoice as "Deposit Applied"
- Has its own unique invoice number (e.g., INV-DEP-2026-008)
Typical Deposit Amounts by Industry
| Industry | Typical Deposit | Rationale |
|---|---|---|
| Wedding photography | 30–50% | Date is blocked exclusively — cancellation is costly |
| Video production | 50% | Pre-production costs begin before filming |
| Web design / development | 30–50% | Significant upfront design and planning time |
| Construction / renovation | 10–30% | Materials must be ordered before work starts |
| Consulting | 25–30% | Secures the engagement; confirms client seriousness |
| Graphic design | 25–50% | Concept and discovery work begins immediately |
Example: Deposit Invoice — Photography (Ontario)
| Description | Amount |
|---|---|
| Invoice: INV-DEP-2026-031 Date: March 10, 2026 Due: March 24, 2026 Re: Wedding Photography Booking — June 14, 2026 | |
| Non-Refundable Booking Retainer — 25% of total contract value Total contract value: $4,000. This deposit secures your date and initiates the service agreement. The remaining $3,000 is due 14 days after your event. | $1,000.00 |
| Subtotal | $1,000.00 |
| HST 13% (BN: 123456789 RT0001) | $130.00 |
| Deposit Due — Due March 24, 2026 | $1,130.00 |
How to Apply the Deposit to the Final Invoice
On the final invoice, reference the deposit invoice number and deduct the deposit from the total:
Invoice Total (services + HST): $4,520.00
Less: Deposit Paid (INV-DEP-2026-031): ($1,130.00)
Balance Due: $3,390.00Note: the deposit should already include HST if you are HST-registered. Do not charge HST again on the deposit amount in the final invoice — only on the remaining balance.
HST on Deposits
When you receive a deposit from a client, the CRA considers this a partial payment for a taxable supply. You must collect and remit HST on the deposit amount at the time you receive it — not just at the time of the final invoice. This means:
- Your deposit invoice must include HST (at the applicable provincial rate)
- Your final invoice should apply HST only to the remaining balance
- In your HST return, report the collected HST in the period when you received the deposit
Cancellation Policy Language
The deposit invoice or accompanying contract should include clear cancellation terms. Here is an example of enforceable cancellation language for a photography or creative services context:
"The booking retainer is non-refundable and non-transferable. In the event of cancellation by the client, the retainer is retained in full as compensation for the date being held exclusively and for preparation time. In the event of cancellation within 14 days of the service date, the full contract amount ($4,000 + HST) becomes due immediately. The service provider reserves the right to reschedule in the event of illness or emergency."
Deposit vs. Progress Invoice vs. Final Invoice
| Invoice Type | When Sent | Purpose |
|---|---|---|
| Deposit invoice | Before work starts | Secures the booking; partial prepayment |
| Progress invoice | During the project | Bills for work completed to date (construction, consulting) |
| Final invoice | Upon completion | Full remaining balance after deposit deducted |
Related Templates
- Photography Invoice Template — deposits are standard for wedding photographers
- Project-Based Invoice Template — milestone billing includes an initial deposit
- Contractor Invoice Template — progress billing and deposit invoicing for construction
- Video Production Invoice Template — 50% deposit before production begins
- Canadian Freelance Invoice Template