Being paid in US dollars does not determine whether a Canadian freelancer charges GST/HST. First establish the nature and place of the supply and whether an export provision applies. Then convert foreign-currency consideration to Canadian dollars for GST/HST purposes using an accepted method. A US client can receive a zero-rated supply only when the applicable conditions are met. CRA: foreign-currency conversion; CRA: exports.
Does USD revenue count toward the $30,000 threshold?
Under the ordinary small-supplier test, worldwide taxable supplies—including eligible zero-rated supplies—and relevant supplies of associates count. Convert foreign-currency consideration to Canadian dollars for your records; genuinely exempt supplies are treated differently. Track the taxable consideration across business channels rather than only the net money deposited after payment or platform fees. CRA: when to register.
If taxable consideration exceeds $30,000 in a single calendar quarter, the supply that takes the total over the limit is the trigger. If it exceeds the limit over four or fewer consecutive quarters but not in one quarter, small-supplier status ends at the end of the month after the quarter of the crossing. CRA’s table explains the registration effective date for each case. Special thresholds and exceptions apply to some businesses. CRA registration guidance.
How do you convert a USD invoice?
CRA’s general rule uses the exchange rate on the day GST/HST becomes payable. This is generally the earlier of payment and the day the consideration becomes due; invoice dates, issue dates and the written agreement can affect when it is due. CRA also accepts the day payment is made, the day foreign currency is acquired, or the average exchange rate for the month in which the tax becomes payable. Where using an alternative day, apply it consistently for a reasonable period, such as a year. The Bank of Canada is one acceptable source. If the chosen day falls on a weekend or holiday, use the exchange rate for the previous business day instead. Acceptable sources also include the rate actually used for the conversion, your usual source for conversions, a Canadian chartered bank, or the CBSA rate used for the value for duty of imported goods; any premium paid to obtain the foreign currency is included in the Canadian-dollar value. CRA memorandum 3-6.
Illustration, with a hypothetical exchange rate: An Ontario taxable service is invoiced for US$1,000 before tax. Suppose the accepted conversion rate is US$1 = C$1.35 on the relevant date. The consideration is C$1,350; 13% HST is C$175.50. The rate is an example, not a historical quote. Keep the invoice, the method, date, exchange-rate source and calculation. A different accepted date or monthly average may produce a different CAD value; do not choose whichever rate happens to minimize tax for each invoice. CRA conversion rules; current rates.
| Conversion day used | Date | Rate (US$1 =) | Consideration (CAD) | HST (13%) |
|---|---|---|---|---|
| Invoice date | Sep 11, 2017 | C$1.2478 | C$1,247.80 | C$162.21 |
| Payment date | Oct 19, 2017 | C$1.2128 | C$1,212.80 | C$157.66 |
Charging a Canadian client in US dollars
Billing a Canadian client in US dollars does not by itself decide the GST/HST treatment: taxable supplies are charged at the rate for the type and place of supply, zero-rated supplies are taxed at 0%, and exempt supplies are not charged GST/HST (CRA: type of supply). CRA’s memorandum 3-6 confirms that a supplier may invoice and be paid in a foreign currency, but the foreign currency must still be converted to Canadian dollars using one of the accepted methods above to determine the GST/HST amount for reporting purposes. Keep the conversion date, rate, source and the resulting CAD figure in your records so the return matches an accepted method. CRA memorandum 3-6.
What if the client is in the United States?
A consulting service to a non-resident US company can be zero-rated if the conditions of the applicable advisory-service provision are satisfied. Do You Charge GST/HST to US Clients? covers the full export tests, evidence and zero-rating conditions. CRA: exports of services and intangibles; CRA: type of supply.
What should the invoice and records show?
Identify the currency, supply, recipient and actual tax treatment; retain the agreement and evidence supporting any export treatment. Record the conversion separately for your Canadian tax records. If you also invoice taxable Canadian supplies, use the applicable place-of-supply rate and required invoice information. The invoice guide explains common GST/HST invoice fields.
If your business is physically located in Quebec, Revenu Québec generally administers GST/HST, with an exception for selected listed financial institutions. QST is a separate question. CRA: GST/HST and Quebec. Employment wages and payroll are a different issue from a self-employed person’s taxable business supplies.
Sources checked October 16, 2026: CRA foreign-currency, registration, export, rates and type-of-supply guidance linked above.