Invoice Template for Contractors & Tradespeople in Canada
Deposits, progress billing, and materials vs. labour work differently than a typical service invoice. Here's how to structure each one — and a free template that handles the GST/HST math.
Quick answer
Contractor invoices need the same legal basics as any Canadian invoice (business info, invoice number, itemized charges, GST/HST breakdown), plus clear handling of project-specific details: which phase or milestone this invoice covers, materials billed separately from labour, and — for deposits or final invoices — how this amount relates to the total contract value.
How to handle common contractor billing scenarios
Deposit invoices
Add a single line item describing the deposit (e.g. "Deposit — 30% of kitchen renovation, per contract dated [date]") with the deposit amount as the price. Note the total project value and remaining balance in the Notes field so the client has the full picture.
Progress billing
Use the Service Period field to mark the date range each invoice covers (e.g. "June 1 – June 15"), and list completed milestones or percentage-complete as separate line items. This keeps a clean paper trail if a project spans several invoices.
Materials vs. labour
List materials and labour as separate line items rather than one lump sum — it's clearer for the client, easier to dispute-proof, and some materials may have different tax treatment than labour depending on your situation.
Final invoice / holdback release
For larger projects with a holdback, your final invoice should clearly reference the original contract value, amounts already invoiced, and the holdback amount being released — put this breakdown in the Notes or Terms field.
GST/HST rates and registration
The same provincial GST/HST/PST/QST rules apply to contractors as any other Canadian business — including the $30,000 small-supplier threshold for registration. For the full province-by-province rate table and registration rules, see our full invoicing and tax guide. Construction and real-property work can have additional tax nuances beyond the standard rules — when in doubt, confirm specifics with the CRA or an accountant.
Try it on your next invoice
Free, no signup — add a service period, list materials and labour separately, and let tax calculate automatically.
Create your invoice