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🇨🇦Canada·GST/HST 5%·CAD

Canada Auto Repair Invoice Template

Canadian auto repair shops must display their Business Number on all invoices and charge GST/HST on both labor and parts. Provincial consumer protection laws typically require a written estimate before work begins — reference the estimate number on the final invoice. In Ontario, the Consumer Protection Act requires shops to obtain authorization before exceeding an estimate by more than 10%. Include your provincial shop license number where applicable. Auto repair invoices — sometimes called repair orders — must clearly separate labor from parts and fluids, because these attract different tax treatment in many jurisdictions and because clients (and insurers) want to see exactly what work was performed and what was fitted. A detailed repair invoice also serves as a service record that adds value to the vehicle. Shops billing insurance companies must follow the insurer's approved labor rates and parts sourcing requirements, which should be noted on the invoice.

Prefill by industry

Accent Color

Your Business

Bill To (Client)

Invoice Details

%

Line Items

Item 1
$285.00
Item 2
$480.00
Item 3
$65.00
Item 4
$120.00
Item 5
$50.00

🇨🇦 Canada Requirements

Currency$ CAD
TaxGST/HST (5%)
Date formatDD/MM/YYYY
PaymentInterac e-Transfer and EFT are the most common payment methods.

Businesses registered for GST/HST should include their GST/HST account number on invoices their customer may use to support input tax credit (ITC) claims. The federal GST rate is 5%; HST applies in participating provinces (Ontario 13%, Nova Scotia 15%, etc.). Businesses in Quebec typically apply QST separately at 9.975%.

Payment Terms

Due on collection of vehicle

About Canada Auto Repair Invoicing

Canadian auto repair shops must display their Business Number on all invoices and charge GST/HST on both labor and parts. Provincial consumer protection laws typically require a written estimate before work begins — reference the estimate number on the final invoice. In Ontario, the Consumer Protection Act requires shops to obtain authorization before exceeding an estimate by more than 10%. Include your provincial shop license number where applicable. Auto repair invoices — sometimes called repair orders — must clearly separate labor from parts and fluids, because these attract different tax treatment in many jurisdictions and because clients (and insurers) want to see exactly what work was performed and what was fitted. A detailed repair invoice also serves as a service record that adds value to the vehicle. Shops billing insurance companies must follow the insurer's approved labor rates and parts sourcing requirements, which should be noted on the invoice.

Frequently Asked Questions

Should labor and parts be listed separately on an auto repair invoice?
Always. Labor and parts are taxed differently in many US states (labor is often tax-exempt while parts are subject to sales tax). Even where tax treatment is identical, clients and insurers expect to see the breakdown. A combined 'repair charge' is a red flag for insurance assessors and makes disputes harder to resolve.
How should auto repair shops handle warranty-covered work on invoices?
If work is covered by manufacturer warranty, show the full labor and parts costs on the invoice and then apply a 100% warranty credit so the client sees the value of the coverage. This protects you when reclaiming from the manufacturer and gives the client a clear record of what was done.
What should auto repair shops do when the final cost exceeds the estimate?
Most jurisdictions require shops to obtain authorisation from the customer before exceeding an agreed estimate by more than a set percentage (commonly 10%). Document any authorisation in writing or via text/email. On the invoice, reference the original estimate number and clearly note that the additional work was authorised on a specific date.
Do auto repair shops charge sales tax on parts and labor?
In the US, most states tax auto parts but not labor, though some (e.g. Hawaii, New Mexico) tax both. Always check your specific state's rules. In the UK, both labor and parts are subject to 20% VAT for VAT-registered businesses. In Australia, both are subject to 10% GST.
How does GST/HST work on Canadian invoices?
Canada levies a 5% federal Goods and Services Tax (GST). In participating provinces, GST is combined with a provincial component into the Harmonized Sales Tax (HST) — for example, 13% in Ontario and 15% in Nova Scotia. In Quebec, GST and QST (9.975%) are charged separately. Businesses must register once they exceed $30,000 CAD in a single calendar quarter or over four consecutive calendar quarters.
Do I need a Business Number on my Canadian invoices?
If you are registered for GST/HST, include your 15-character Business Number (BN) on invoices your customer may use to support input tax credit (ITC) claims — this is your 9-digit BN followed by the program identifier (RT) and a 4-digit reference number (e.g., 123456789 RT0001). Without a valid BN, your clients may not be able to use the invoice to claim ITCs.
Are there different invoicing rules by Canadian province?
Yes. Provinces that use HST (Ontario, New Brunswick, Nova Scotia, Newfoundland, PEI) require a single combined tax line. Quebec requires separate lines for GST and QST, and QST-registered businesses must also show their QST number. British Columbia, Saskatchewan, and Manitoba charge GST plus their own Provincial Sales Tax (PST), which may have separate registration and invoicing requirements.

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Same template, other countries:

🇺🇸 United States🇬🇧 United Kingdom🇦🇺 Australia