Invoicing US clients from Canada involves a few key differences from billing Canadians — currency choice, GST/HST zero-rating, and payment method. Get these right and you streamline collection; get them wrong and you create GST/HST liabilities or payment friction.
Currency: Always Invoice in USD for US Clients
Invoice US clients in USD. US businesses and individuals operate in USD and strongly prefer invoices in their own currency. Sending a CAD invoice creates conversion uncertainty on their end — they do not know what their bank will charge them on the conversion day.
When you receive USD, convert to CAD when you need it using Wise Business (mid-market rate + ~0.63%) rather than your Canadian bank (2.5–3.5% markup). On $5,000 USD/month in client revenue, this difference saves approximately $1,000–$1,500 CAD per year.
GST/HST on US Client Invoices: Zero-Rated
Services provided to clients outside Canada are zero-rated for GST/HST purposes. This means:
- You charge 0% GST/HST on invoices to US clients
- Do not add Canadian HST to a US client’s invoice
- If GST/HST registered, you still claim Input Tax Credits on your Canadian business expenses — even when all clients are international
On your GST/HST invoice (if registered), write: “GST/HST: 0% — Export of services (place of supply outside Canada)” or simply omit the GST/HST line and note: “Services exported outside Canada — GST/HST not applicable.”
Keep documentation showing the client is outside Canada (US address on the contract, US payment method) in case of a CRA audit of your zero-rating.
The W-8BEN Form: What It Is and When You Need It
US companies paying Canadian contractors sometimes request a W-8BEN form. This is a US IRS form that certifies you are a non-US person and exempts you from US withholding tax. If a US client asks for it:
- Download Form W-8BEN from the IRS website (irs.gov)
- Complete Part I: your legal name, country of citizenship (Canada), Canadian address, and country of tax residence (Canada)
- Part II (claim of treaty benefits): under the Canada-US tax treaty, most business income earned by Canadian residents from US clients is exempt from US withholding tax — enter “Canada” as the country and “Business profits — Article VII” as the treaty article
- Sign and date the form — do NOT include your SIN (the equivalent of SSN for Americans); for services, a W-8BEN without a US TIN is acceptable
- Return to the US client — this form confirms to their accounts payable that they do not need to withhold 30% of your invoice for the IRS
Payment Methods for US Clients
| Method | Client Pays | Your Cost | Speed |
|---|---|---|---|
| Wise Business (ACH) | $0 (domestic ACH) | $0 incoming; ~0.63% to convert | 1–2 business days |
| Stripe (credit card) | $0 | 2.9–4.4% + $0.30 | 2–7 days payout |
| PayPal | $0 (PayPal balance) | 3.49% + FX spread | Instant to PayPal; 2–5 days to bank |
| US bank wire (SWIFT) | $15–$30 | $15–$20 receiving; FX spread | 1–3 business days |
Invoice Template for US Clients
[Your Name / Business Name]
[Canadian Address]
[Email]
INVOICE
Invoice #: INV-2026-055
Date: June 15, 2026
Due: June 29, 2026
Bill To:
[Client Company Name]
[US Address]
Description Amount (USD)
─────────────────────────────────────────────────────
Brand strategy consulting — Q2 2026 $4,500.00
──────────────
Subtotal $4,500.00
GST/HST (0% — export of services) $0.00
──────────────
Total Due (USD) $4,500.00
Payment Options:
• US ACH Transfer (preferred):
Bank: Wise (Community Federal Savings Bank)
Routing: [your Wise routing number]
Account: [your Wise USD account number]
Account Name: [Your Legal Name]
• PayPal: [your PayPal email] (fee applies)
Frequently Asked Questions
Do I need to file anything with the IRS as a Canadian freelancing for US clients?
Generally no. As long as you are a Canadian resident and your services are performed in Canada (not physically in the US), your income is Canadian-source income, not US-source. The Canada-US tax treaty allocates taxation of this income to Canada. File your taxes in Canada as normal. No US tax filing is required for most Canadian freelancers serving US clients remotely.
What if a US client withholds 30% of my invoice without asking for a W-8BEN?
This should not happen for services, but if it does: request your W-8BEN be put on file with the US client’s accounts payable. Once submitted, future invoices should not have withholding. For amounts already withheld, you may need to file a US non-resident tax return (1040-NR) to claim a refund of withheld amounts — consult a cross-border CPA.
Can I deduct bad debts if a US client doesn’t pay?
Yes. If you reported income from a US client on your T2125 and the client later fails to pay, you can deduct the uncollected amount as a bad debt expense in the year the debt is determined to be uncollectible. Keep documentation of collection attempts. This applies equally to Canadian and international clients.