Most Canadian carriers know they need to charge GST or HST. Fewer know which rate applies on any given load — and the wrong answer costs either you or your customer money.
The rule that trips people up most: the rate is based on where the freight is picked up, not where it’s delivered.
A load from Alberta to Ontario gets charged 5% GST. Not 13% HST. The delivery province doesn’t set the rate. The pickup province does.
GST vs HST: Which Province Is Which
Canada runs two systems. Know which one your customers are in.
GST only at 5%: Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Northwest Territories, Nunavut, Yukon. Quebec also charges QST provincially, but that’s separate and doesn’t affect your freight invoice.
HST (harmonized, includes provincial portion): Ontario (13%), New Brunswick (15%), Nova Scotia (15%), Prince Edward Island (15%), Newfoundland and Labrador (15%).
The rule to remember: If your load picks up in a GST-only province, you charge 5% regardless of where it delivers. If it picks up in an HST province, you charge the HST rate for that province.
The exception: if the load both picks up and delivers within the same HST province, the HST rate for that province applies. Toronto to Ottawa is 13% HST. Vancouver to Calgary is 5% GST.
Cross-Border Loads: Zero-Rated, Not Exempt
Freight that crosses the Canada-US border is zero-rated under the Excise Tax Act. Zero-rated means taxable at 0% — not exempt, not outside the system. The invoice shows the tax line, the rate is 0%, the amount is $0.
The practical difference between zero-rated and exempt matters for your input tax credits. Make sure your bookkeeper or accountant understands which applies to your cross-border loads.
Zero-rated status requires documentation. If CRA audits your zero-rated claims, you need to show the goods actually crossed the border — the bill of lading, customs documentation, or proof of export. Keep those records.
What Goes on the Invoice
A compliant freight invoice in Canada shows:
- Your GST/HST registration number
- The tax rate applied
- The tax amount as a separate line item
- The total
If you’re billing $4,200 for a load that picked up in BC, the invoice reads: $4,200.00 freight + $210.00 GST (5%) = $4,410.00. Clean, auditable, correct.
Missing your GST/HST number on an invoice isn’t just sloppy — it’s a CRA compliance issue and it can delay payment from customers whose accounts payable team needs it to process the invoice.
The Four Mistakes That Cost Carriers Money
Charging the delivery province rate. The most common error. If your TMS or invoice template defaults to your home province’s rate regardless of pickup location, you’re probably making this mistake on every cross-province load.
Charging GST on US loads. Some carriers apply GST by default. This means your US customer paid tax they shouldn’t have, and now they want a credit note. A preventable headache.
Operating without a GST number. If your annual freight revenue exceeds $30,000 — which it does for essentially any operating carrier — you’re legally required to be registered. Without a registration number, you can’t collect the tax legally, and you’re personally liable for it.
Forgetting that fuel surcharge is taxable. FSC is part of the freight service and gets the same tax treatment as the linehaul rate. If the load is zero-rated, the FSC is zero-rated. If it’s GST, the FSC gets GST. It’s not a separate category.
How CyVeR Handles Tax
CyVeR calculates GST and HST automatically based on the pickup location on each order. You configure your registration number, province, and applicable rates once during setup. Every invoice generated from a completed load applies the correct rate automatically — no manual calculation, no wrong province.
Cross-border orders are flagged for zero-rated treatment. The Pro plan includes a monthly finance report showing tax collected by province, which makes quarterly GST remittances significantly less painful.
Tax calculation is included on all CyVeR plans.