The Freelancer's Guide to Canadian Taxes

Canada's tax system is a unique hybrid. Depending on where your client is located, you might charge GST** (5%), **HST** (up to 15%), or a combination of **GST + PST.

The Rate Roulette

Alberta: 5% GST only.

Ontario: 13% HST.

Nova Scotia: 15% HST.

BC: 5% GST + 7% PST.

As a freelancer, the "Place of Supply" rule usually dictates that you charge the rate applicable to *your client's province*, not your own.

Input Tax Credits (ITC)

The good news? GST/HST is a flow-through tax. If you collect \$1000 in GST but pay \$200 in GST on business expenses, you only remit \$800 to the CRA. This is called an Input Tax Credit.

How SparkyMinis Simplifies Compliance

1. Province-Specific Tax Chips

Go to: `Dashboard > Settings > Tax & Compliance`.

Pre-configure chips for your common clients: `Ont HST (13%)`, `BC GST (5%)`.

This saves you from googling rates every time you invoice a new Vancouver client.

2. ITC Eligibility Tracking

This is crucial for your quarterly return.

When logging an Expense (e.g., Internet bill):

Check the "ITC Eligible" box.

SparkyMinis separates the tax portion from the cost, building a "Total ITC" report for you automatically.

3. Business Number (BN)

Your invoices must show your BN if you are registered. Add it once in `Settings > Account`, and it will appear on every PDF footer, meeting CRA requirements. Configure Your Canadian Tax Profile →

"Canada: Demystifying GST, HST, and Input Tax Credits"

The Freelancer's Guide to Canadian Taxes

The Rate Roulette

Input Tax Credits (ITC)

How SparkyMinis Simplifies Compliance

1. Province-Specific Tax Chips

2. ITC Eligibility Tracking

3. Business Number (BN)

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