GST/HST on US clients in Canadais one of the most common sales tax questions for Canadian freelancers. If you design, write, code, consult, coach, or sell services online, you may have heard that you “do not charge HST to foreign clients.” That is often true for US clients — but the actual rule is about zero-rated exports, the customer's residency, and the type of service you provide.
GST/HST on US clients in Canada: the short answer
In many cases, a Canadian freelancer does not charge GST/HST on services sold to a US client because the supply is zero-rated. Zero-rated means the tax rate is 0%. You still treat the sale as part of the GST/HST system, but the invoice shows $0 of tax.
This is different from being exempt. Exempt supplies are outside the GST/HST system and usually do not allow input tax credits. Zero-rated supplies are taxable supplies at 0%, which is why they can still matter for registration and record-keeping. If that distinction is new, read our guide to zero-rated vs exempt supplies in Canada.
When services to US clients are usually zero-rated
Many services supplied to a non-resident person are zero-rated under the GST/HST rules. For a typical sole proprietor, that often includes:
- Freelance writing, editing, marketing, or design services
- Software development, web development, and technical consulting
- Business strategy, operations, and management consulting
- Virtual assistance or back-office support for a US business
- Some digital services delivered remotely to a US customer
Example: you are an Ontario web developer registered for HST. You build a website for a US corporation with no Canadian office involved in the contract. The service is delivered remotely and the customer is a non-resident. In many situations, you would invoice the US client with 0% GST/HST rather than 13% HST.
Important exceptions to watch
Do not assume every foreign invoice is automatically zero-rated. The rules have exceptions, and the facts matter. GST/HST may apply if the service is closely connected to Canadian real property, tangible goods located in Canada, an event in Canada, or a person who is in Canada when the service is performed.
Common examples that need extra care include:
- Work related to Canadian real estate or construction projects
- Services performed on goods located in Canada
- Admission or services connected to an in-person Canadian event
- Legal, accounting, or advisory work tied to Canadian property
- Situations where the “US client” is really a Canadian branch
If your work touches property, goods, or events in Canada, check the CRA guidance or ask an accountant before treating the invoice as zero-rated.
Do US client sales count toward the $30,000 threshold?
Yes, often they do. This is the part that surprises freelancers. Because zero-rated supplies are still taxable supplies, they generally count toward the CRA's $30,000 small supplier threshold. You may collect $0 of GST/HST from US clients and still be required to register once your taxable supplies exceed the threshold.
The threshold is based on a rolling four-calendar-quarter period, not the calendar year. If you have a mix of Canadian and US revenue, track both carefully. Our article on how the GST/HST threshold works explains the rolling calculation.
This is exactly where HST Hero helps: you can track revenue as it comes in and see whether you are approaching the GST/HST registration threshold before the CRA deadline becomes a problem.
What should your invoice say?
If you are registered and the sale is zero-rated, your invoice should be clear. Include your business name, invoice date, description of the work, client details, your GST/HST number, and the tax treatment.
A simple line like “GST/HST charged at 0% — zero-rated supply” can help explain why no tax was added. Keep the invoice professional and consistent with your Canadian invoices. For invoice basics, see our guide to invoicing with HST as a Canadian freelancer.
What records should you keep?
The CRA can ask you to support the zero-rated treatment. Keep practical evidence that the customer is outside Canada and that the supply qualifies. Useful records include:
- The client's billing address and contract address
- Emails, statements of work, or contracts showing the US customer
- Payment records from a US company or US billing account
- Platform or checkout reports showing customer location
- Notes explaining why the service was not connected to Canadian property, goods, or events
Good records are especially important if most of your revenue comes from outside Canada and your GST/HST return shows significant zero-rated sales.
The bottom line
- Many services to US clients are zero-rated at 0% GST/HST
- Zero-rated is not the same as exempt
- US client revenue can still count toward the $30,000 threshold
- Keep evidence that the customer is a non-resident and the service qualifies
- Be careful with services tied to Canadian property, goods, or events
If your freelance business is growing through US clients, do not wait until tax season to sort it out. Track your revenue monthly, keep clean invoices, and use HST Hero to see when GST/HST registration may be coming.