Canada Auto Repair invoices must comply with local tax regulations.
Quick-fill by industry
Accent Color
Your Business
Bill To (Client)
Invoice Details
%
Line Items
Item 1
$100.00
Item 2
$100.00
Item 3
$100.00
Item 4
$100.00
Item 5
$100.00
Live preview
INVOICE
INV-0001
Your Business Name
Your Address
Bill To
Client Name
Client Address
Invoice Date
01/06/2026
Due Date
01/07/2026
Currency
CAD
Description
Qty
Rate
Amount
Labour (per hour, at workshop rate)
per hours
1
$100.00
$100.00
Parts & Components (OEM / aftermarket)
per actual cost
1
$100.00
$100.00
Consumables (oil, filters, coolant)
per actual cost
1
$100.00
$100.00
Diagnostic / Fault Code Reading
per flat fee
1
$100.00
$100.00
MOT / Inspection Fee
per flat fee
1
$100.00
$100.00
Subtotal$500.00
GST/HST (5%)$25.00
Total CAD$525.00
Payment
Interac e-Transfer and EFT are the most common payment methods.
Thank you for your business · InvoiceYard.com
5 items · Subtotal $500.00 + GST/HST $25.00
Total: $525.00
🇨🇦 Canada Requirements
Currency$ CAD
TaxGST/HST (5%)
Date formatDD/MM/YYYY
PaymentInterac e-Transfer and EFT are the most common payment methods.
Businesses registered for GST/HST must display their Business Number (BN) on invoices. The federal GST rate is 5%; HST applies in participating provinces (Ontario 13%, Nova Scotia 15%, etc.). Quebec residents apply QST separately at 9.975%.
Payment Terms
Due on collection of vehicle
About Canada Auto Repair Invoicing
Canada Auto Repair invoices must comply with local tax regulations. The applicable tax is GST/HST at 5%. Auto repair invoices — sometimes called repair orders — must clearly separate labour 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 labour rates and parts sourcing requirements, which should be noted on the invoice.
Frequently Asked Questions
Should labour and parts be listed separately on an auto repair invoice?
Always. Labour and parts are taxed differently in many US states (labour 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 labour 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 labour?
In the US, most states tax auto parts but not labour, though some (e.g. Hawaii, New Mexico) tax both. Always check your specific state's rules. In the UK, both labour 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 with annual revenue over $30,000 CAD must register, collect, and remit GST/HST.
Do I need a Business Number on my Canadian invoices?
If you are registered for GST/HST, you must display your 15-character Business Number (BN) on all invoices — this is your 9-digit BN followed by the program identifier (RT) and a 4-digit reference number (e.g., 123456789 RT0001). Invoices without a valid BN cannot be used by your clients to claim Input Tax Credits (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.
