Yes, newcomers can absolutely bill US clients from Canada. There are no legal restrictions on Canadian residents — including permanent residents and work permit holders with authorization to work — invoicing clients in the United States for services rendered. This guide explains exactly how to set it up correctly.
Legal and Immigration Considerations
Your ability to work for US clients from Canada depends on your immigration status:
- Permanent residents and Canadian citizens: Full unrestricted right to invoice and work for any client, including US clients.
- Open work permit holders: Generally permitted to work for any employer, including foreign clients. Confirm that your permit has no employer-specific restrictions.
- Employer-specific work permit holders: You are authorized to work only for the specific employer named on your permit. Taking on US clients as self-employed income may violate your permit conditions — consult an immigration lawyer before proceeding.
- Study permit holders: Off-campus work is limited to 24 hours per week during academic sessions. Self-employment income from US clients counts toward this limit.
If you are uncertain about your status, contact IRCC directly or consult a Regulated Canadian Immigration Consultant (RCIC) before taking on self-employment income.
GST/HST: Do You Charge It to US Clients?
No. Services you export to clients located outside Canada are zero-rated under the Excise Tax Act. This means you charge 0% GST/HST on invoices to US clients. You are still entitled to claim Input Tax Credits (ITCs) on GST/HST you pay on Canadian business expenses — even though you are charging 0% to your foreign clients.
To qualify for zero-rating, the service must be performed for a client located outside Canada and must not be consumed in Canada. For most freelance services (software development, marketing, copywriting, design, consulting), this condition is easily met.
You do not need to be registered for GST/HST to bill US clients. But once your total revenue from all sources (Canadian + foreign) exceeds $30,000 in four consecutive calendar quarters, you must register. After registration, you charge 0% to US clients and collect the applicable rate from Canadian clients.
How to Invoice a US Client
Your invoice to a US client should include:
- Your full legal name (or registered business name) and Canadian address
- The client’s name and US address
- Invoice number and date
- Clear description of services rendered
- Currency (specify USD or CAD — most US clients expect USD)
- Payment amount and due date
- Your payment details (Wise USD account, Stripe link, or wire transfer instructions)
- A note: “GST/HST: 0% — Export of services” if you are GST/HST registered
How to Receive USD Payment from a US Client
The most cost-effective option for most newcomers is Wise Business, which gives you a real US bank account (routing number + account number). US clients can pay you via ACH transfer as if you were a US bank — no international wire fees, no currency conversion until you choose to convert. Conversion rates at Wise are close to the mid-market rate with a fee of approximately 0.4–0.8%.
Stripe and PayPal are alternatives if clients prefer card payment, but their currency conversion fees are higher (2.9%+ and 3–4% respectively).
Reporting USD Income to CRA
All income must be reported in Canadian dollars on your T1 tax return. For each USD payment, convert to CAD using the Bank of Canada exchange rate on the date you received the payment. The CRA also accepts the annual average exchange rate for simplicity — consult your tax software or a CPA for guidance on which approach applies to your situation.
Keep records of every payment: date received, USD amount, CAD equivalent, and the exchange rate used. Your accounting software (FreshBooks, Wave, QuickBooks) can track this automatically if you enable multi-currency.
Frequently Asked Questions
Do I need a Canadian business number to bill US clients?
No. You can invoice as a sole proprietor using your legal name without a Business Number. A Business Number (BN) is required only if you register for GST/HST, payroll, or import/export accounts with the CRA. Since services to US clients are zero-rated, you can invoice without GST/HST registration until you exceed the $30,000 threshold.
Can a US client ask me to sign a W-9 or W-8BEN form?
Some US clients will ask you to complete IRS tax forms. As a Canadian resident providing services outside the US, you typically need to complete a W-8BEN (if you are an individual) or W-8BEN-E (if you have a corporation). This form certifies that you are a non-US person and exempts you from US withholding tax on service payments. Do not complete a W-9 — that form is for US persons.
What if the US client wants to pay by USD cheque?
USD cheques can be deposited at most Canadian banks, but processing takes 5–10 business days and conversion rates are poor. Request ACH or wire transfer instead, or set up a Wise Business account and give the client your US bank details.