An invoice is a document a seller issues to a buyer requesting payment for goods or services, listing amounts, terms, and any GST/HST charged.
An invoice is the formal request for payment and the source document behind a sale. It records what was sold, the amount, payment terms, and, for registered businesses, the GST/HST charged. The invoice date drives revenue recognition under accrual accounting and the period in which sales tax becomes payable.
Invoices must meet CRA content requirements to support a buyer's input tax credit claim, including the seller's GST/HST number for larger amounts. Well-organised invoicing underpins accurate receivables tracking, timely collection, and a clean audit trail.
A consultant issues an invoice for $2,000 plus $260 HST, due in 30 days. The invoice date determines when the $2,000 is recognised as revenue and when the $260 HST must be remitted, regardless of when the client pays.
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