# CRA GST/HST Place of Supply Rules for Canadian Contractors & Freelancers (2026)

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- **Summary:** CRA GST/HST place of supply rules for Canadian contractors & freelancers (2026): real property vs services, 5% GST vs 13%–15% HST & out-of-province billing.

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# CRA GST/HST Place of Supply Rules for Canadian Contractors & Freelancers (2026)

**Short answer: Under the Canada Revenue Agency (CRA) GST HST place of supply rules (`Excise Tax Act` Schedule IX and the *New Harmonized Value-Added Tax System Regulations*), the sales tax rate you charge on an out-of-province invoice depends on the type of supply, not where your business is located. Construction and renovation work on real property is taxed at the rate of the province where the building sits (`5% GST` in AB/BC/SK/MB/QC, `13% HST` in ON, `14% HST` in NS, or `15% HST` in NB/NL/PE), while general freelance services follow the client's address.**

> **⚡ Instant Canadian Interprovincial GST/HST, T2125 & Contractor Invoice Toolkit (`$CAD`):** Calculate your exact provincial `5% GST` or `13%–15% HST` and net T2125 tax in the interactive **[Canadian Self-Employment Tax & GST/HST Calculator](/keel/self-employment-tax-calculator/)** below (or click **🔗 Embed / CSV Template**), save up to **5 Free Saves in your [iCloud Web Workspace](/keel/workspace/)**, explore the **[Canadian Trades & GST/HST App Store Edition](/keel/cpp/canada-trades-gst-hst/)** and **[Québec Travailleur Autonome Edition](/keel/cpp/quebec-travailleur-autonome/)**, or **[Download Keel Free on the App Store (`$0/mo` Core)](https://apps.apple.com/ca/app/keel-invoice-maker-receipts/id6786659713?ppid=1883fcbe-ca1d-4b99-b3d6-bdd88476d75f)** (`ca-trades`).

One of the most expensive invoicing mistakes Canadian tradespeople, construction subcontractors, and independent consultants make is charging their **home province's tax rate** when working across a provincial border or billing an out-of-province client. If an Alberta contractor (used to charging **5% GST**) takes a commercial renovation contract in Ontario and only charges 5% GST instead of **13% Ontario HST**, the CRA assesses the contractor for the missing **8% provincial HST portion** on audit.

Below is the complete **2026 Canada Revenue Agency (CRA)** breakdown of the **[GST/HST place-of-supply rules](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-place-supply.html)** (administered under *GST/HST Technical Information Bulletin B-103*), how the rules differ between **real property construction**, **delivered goods**, and **general freelance services**, and when out-of-province work triggers separate provincial PST/QST obligations. For companion Canadian guides, see [GST, HST, and PST rates by province](/keel/canada-gst-hst-rates-by-province/), [how to calculate GST/HST](/keel/canada-how-to-calculate-gst-hst/), and [how to file a GST/HST return](/keel/canada-how-to-file-gst-hst-return/).

## How do CRA GST HST place of supply rules work by supply category?

Once you are registered for a federal **CRA GST/HST account (`RT0001`)** (mandatory above the **$30,000 small-supplier threshold**), your single federal GST/HST number covers **both 5% GST and 13%–15% HST across every province**. You do **not** open a new CRA account to charge Ontario or Nova Scotia HST—you simply apply the rate dictated by the CRA's place-of-supply hierarchy:

| Type of Supply | CRA Place-of-Supply Rule (*Excise Tax Act* / Regs) | Which Province's GST or HST Rate Applies? | Contractor / Freelancer Example |
|---|---|---|---|
| **1. Real Property & Services in Relation to Real Property** *(Construction, renovation, electrical, plumbing, roofing, painting, land surveying, architectural design for a specific site)* | **Where the real property (building or land) is physically located** | The rate of the province where the **job site sits** — even if the property owner or head contractor is headquartered in another province | A Gatineau, QC electrician renovating a house in **Ottawa, ON** must charge **13% Ontario HST** (not 5% GST + 9.975% QST) |
| **2. Tangible Personal Property (Goods) by Sale** *(Custom cabinets, fabricated steel, equipment sold & delivered)* | **Where legal delivery / possession of the goods is given to the buyer** (or where the supplier ships/mails the goods to) | The rate of the **destination province** where the goods are delivered | An Edmonton cabinet shop shipping custom millwork via freight carrier to a client in **Halifax, NS** charges **14% Nova Scotia HST** |
| **3. Personal Services (Performed in Person)** *(On-site repair of movable equipment, event photography, in-person training)* | **Where the service is physically performed** (if > 50% is performed in one province) | The rate of the province where the service is physically carried out | A BC heavy-duty mechanic repairing a portable generator in **Calgary, AB** charges **5% GST** |
| **4. General Services (Rule 1 — Standard Rule)** *(Remote software development, consulting, graphic design, bookkeeping, marketing)* | **The client's Canadian address obtained in the ordinary course of business** (if only one address is obtained, use the billing/business address) | The rate of the **client's province** on your invoice | A Vancouver web developer (`BC — 5% GST`) invoicing a corporate client in **Toronto, ON** charges **13% Ontario HST** |

## Which 2026 interprovincial GST or HST rate applies on your `RT0001` invoice?

When the CRA place-of-supply rules place your job or client in a given province, here is the exact tax rate your federal **`RT0001` GST/HST account** collects in 2026—and what happens with non-participating provincial taxes (`PST`, `RST`, `QST`):

| Destination Province / Territory (Place of Supply) | Participating HST Province? | Federal GST / HST Rate to Charge on Your CRA `RT0001` Invoice | Separate Provincial Tax (`PST / QST / RST`) Watchout for Contractors |
|---|---|---|---|
| **Ontario (`ON`)** | Yes | **13% HST** | None — single 13% HST rate on labour and materials |
| **Nova Scotia (`NS`)** | Yes | **14% HST** *(reduced from 15% on Apr 1, 2025)* | None — single 14% HST rate on labour and materials |
| **New Brunswick (`NB`), Newfoundland & Labrador (`NL`), PEI (`PE`)** | Yes | **15% HST** | None — single 15% HST rate on labour and materials |
| **Alberta (`AB`), Yukon (`YT`), NWT (`NT`), Nunavut (`NU`)** | No | **5% GST** | None — no territorial or provincial sales tax exists |
| **British Columbia (`BC`)** | No | **5% GST** | **7% BC PST:** under BC's real property contractor rules, contractors generally pay 7% PST on materials as the final user and do not charge PST on fixed-price real property installation unless agreed in writing |
| **Saskatchewan (`SK`)** | No | **5% GST** | **6% SK PST:** Saskatchewan taxes construction labour and real property services at **6% PST**—non-resident contractors working in SK must register with the SK Ministry of Finance |
| **Manitoba (`MB`)** | No | **5% GST** | **7% MB RST:** contractors pay 7% RST on materials; mechanical & electrical trades have specific Manitoba Finance rules |
| **Québec (`QC`)** | No (Harmonized via Revenu Québec) | **5% GST (`TPS`)** | **9.975% QST (`TVQ`):** administered by Revenu Québec (`FPZ-500-V`) — see [Québec sales tax for contractors](/keel/quebec-sales-tax-for-contractors/) |

## Worked examples in `$CAD`: 2 real-world interprovincial jobs

### Scenario A — Alberta framing contractor working on a cottage in Ontario (`Real Property Rule`)
- **Contractor home province:** Calgary, Alberta (`5% GST`).
- **Job site:** Muskoka, Ontario (`13% HST`), hired by a homeowner who also lives in Calgary.
- **CRA Place of Supply:** Because construction on a building is a **service in relation to real property**, the place of supply is **Ontario** (where the cottage sits), even though both the contractor and the homeowner live in Alberta.
- **Invoice ($10,000 pre-tax):** The contractor bills **$10,000 + $1,300 (13% Ontario HST) = $11,300** using their normal federal `RT0001` GST/HST number, and reports the $1,300 on **Line 105** of their CRA GST34 return. Any 13% HST paid at Ontario lumber yards is claimed back 100% as an **Input Tax Credit (`Line 108`)**.

### Scenario B — Ontario freelance designer billing a Calgary startup (`General Services Rule`)
- **Freelancer home province:** Ottawa, Ontario (`13% HST`).
- **Client address on invoice:** Calgary, Alberta (`5% GST`).
- **CRA Place of Supply:** Remote graphic/UI design is a **general service**. Under Rule 1 of the general services rules, the place of supply follows the **client's Alberta business address**.
- **Invoice ($4,000 pre-tax):** The Ontario freelancer bills **$4,000 + $200 (5% GST) = $4,200**—not 13% HST—while still claiming full 13% Input Tax Credits on their own Ontario studio expenses.

## How do place-of-supply rules interact with the GST/HST Quick Method?

If you use the **[CRA GST/HST Quick Method of Accounting (`Form GST74`)](/keel/canada-contractor-hst-quick-method-guide/)** (applicable to eligible service businesses and labour-only contractors under $400,000 revenue), the CRA provides an interprovincial table of remittance rates based on whether your **permanent establishment** is in a 5% GST province or a 13%–15% HST province, and where your supplies are made. Always separate 5% GST invoices from 13%–15% HST invoices in your job ledger so your year-end **Form T2125** and **GST34** return reconcile to the cent.

## How to keep out-of-province GST/HST invoices and ITC receipts organized for 6 years

Under Section 230 of the *Income Tax Act* and Section 286 of the *Excise Tax Act*, Canadian contractors must retain every interprovincial invoice and supplier receipt for **6 years** from the end of the last tax year they relate to. Using **[Keel (`$0/mo` Core on iPhone & iCloud Web Workspace)](/keel/cpp/canada-trades-gst-hst/)** lets you set the exact provincial GST or HST rate per job and export a clean `T2125` + `GST34` tax pack with no bank connection.

## Frequently asked questions

**Do I charge GST or HST to an out-of-province client in Canada?**

For **general services** (consulting, freelance design, software, bookkeeping), you charge the GST or HST rate of the **client's province** based on the address you obtain in the ordinary course of business. For **construction, renovation, or work on real property**, you always charge the rate of the **province where the property is physically located**.

**Do I need a separate HST number to charge 13% HST in Ontario if my business is in Alberta or BC?**

No. Your single 15-digit **CRA GST/HST program account (`123456789 RT0001`)** covers both 5% GST and 13%–15% HST across all participating provinces. You simply change the tax rate line on your invoice to match the CRA place-of-supply province and report the total on **Line 105** of your regular GST/HST return.

**What tax do I charge on a renovation in Gatineau (Québec) vs Ottawa (Ontario)?**

Because renovation is a service in relation to **real property**, the tax follows the job site address: a job in **Ottawa, Ontario** carries **13% HST** (administered by the CRA), whereas a job across the river in **Gatineau, Québec** carries **5% GST + 9.975% QST** (requiring a Revenu Québec QST registration if you carry on business in Québec above $30,000).

**Can I claim Input Tax Credits (ITCs) on 13% HST paid for hotel and materials in another province?**

Yes. If you are a GST/HST registrant (`RT0001`), you can claim **100% of the 5% GST or 13%–15% HST** paid on eligible business inputs across any province on **Line 108** of your GST/HST return (subject to the standard 50% meals and entertainment limit and documentary invoice rules). However, **provincial retail sales taxes (`7% BC PST`, `6% SK PST`, `7% MB RST`)** are **never** recoverable as federal GST/HST Input Tax Credits.

**What GST/HST rate applies if I sell services to a US or foreign client outside Canada?**

Under *Schedule VI, Part V of the Excise Tax Act*, most general services supplied to a **non-resident client outside Canada** (provided the service is not in relation to real property or goods located in Canada) are **zero-rated (`0% GST/HST`)**—meaning you charge **0% tax** on the invoice while still claiming full Input Tax Credits on your Canadian business expenses.

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*This guide is general information based on the Canada Revenue Agency (CRA) Excise Tax Act (Schedule IX) and GST/HST Technical Information Bulletin B-103 for the 2026 tax year and is not personal tax advice. Verify your specific supply rules at canada.ca or with a Canadian CPA.*