How to Invoice International Clients from Canada (GST & Currency)

Does GST/HST Apply to Services Delivered to Foreign Clients?

In most cases, no. Under Canadian GST/HST rules, services exported to non-residents are generally "zero-rated" — meaning GST/HST applies at a rate of 0%. This means you do not charge GST/HST to your international client, but you are still entitled to claim input tax credits (ITCs) on your Canadian business expenses.

However, zero-rating only applies if:

• The service is supplied to a non-resident client
• The client is outside Canada when the service is performed
• The service is not considered to be "in respect of real property situated in Canada" or tangible goods physically used in Canada

What to Write on the Invoice Instead of GST/HST

When invoicing a foreign client without charging GST/HST, clearly note this on your invoice to avoid confusion. Use a line such as:

• "GST/HST: $0.00 — Zero-rated export supply (ETA s.23)"
• Or simply: "GST/HST not applicable — services exported outside Canada"

This documentation protects you in the event of a CRA audit, demonstrating that you intentionally applied zero-rating rather than forgetting to charge tax.

Foreign Currency Invoicing

You can invoice international clients in their local currency (USD, GBP, EUR, etc.) or in CAD. Both approaches are valid, but each has tradeoffs:

Invoicing in the Client's Currency

Makes it easier for the client to approve and pay, but exposes you to exchange rate risk between the invoice date and payment receipt date.

Invoicing in CAD

Eliminates exchange rate risk on your end, but puts the conversion burden on the client. Some international clients prefer to pay in their own currency and may hesitate at CAD invoices.

Best Practice: State the Currency Clearly

Regardless of which currency you use, always state it explicitly on the invoice. Write "USD $2,500" not just "$2,500" — the dollar sign is ambiguous in international contexts.

Exchange Rate and Currency Clauses

If you invoice in a foreign currency, protect yourself with a currency clause. For example:

"Invoice is in USD. If payment is received in CAD, the Bank of Canada rate on the payment date applies. Exchange rate losses due to late payment are the client's responsibility."

This clause gives you recourse if a client pays weeks late and the exchange rate has moved against you.

What to Include on an International Invoice

• Your full business name and Canadian address
• Your GST/HST registration number (even if charging $0 GST — proves you are registered)
• Client name and country
• Invoice number and dates
• Currency — state clearly (e.g., USD, GBP, EUR, CAD)
• Service description
• GST/HST: $0.00 — Zero-rated export supply
• Total in stated currency
• Payment method — wire transfer (include SWIFT/BIC), Wise, PayPal, or Stripe
• Payment terms

Sample International Client Invoice

For Your Canadian Tax Return

When you report foreign-currency income on your Canadian tax return:

• Convert all foreign-currency amounts to CAD using the Bank of Canada exchange rate on the invoice date (or the date payment was received — choose one method and apply it consistently)
• Keep records of the exchange rates used for each transaction
• If you have foreign-currency bank accounts, the annual balance must be reported on Form T1135 if the combined cost of your foreign property exceeds CAD $100,000