Tax, law and invoicing in the trades — Canada
12 posts for this country. We write our own posts per country instead of translations — the source and the date it was checked sit under every one.
Zirko Redaktion4 min readInvoicing for contractors: the $500 tier and holdback
What a Canadian construction invoice has to carry once it passes $500, why GST/HST on holdback is not payable yet, and the 28-day clock that only starts with a proper invoice.
- Zirko Redaktion9 min read
Alberta prompt payment: 28 days, 7 days, and a proper invoice
The Prompt Payment and Construction Lien Act gives an owner 28 days from a proper invoice and a contractor 7 days from being paid. Invoice at least every 31 days.
- Zirko Redaktion10 min read
British Columbia builders lien: 45 days from the head contract
BC counts from the head contract, not your last day on site. Forty-five days to file, fifty-five days of holdback, one year to enforce — and an owner can cut that to 21 days.
- Zirko Redaktion11 min read
Construction lien deadlines: Ontario and Alberta 60 days, BC 45
Ontario gives 60 days to preserve and 90 more to perfect. Alberta gives 60, or 90 for concrete. British Columbia gives 45 days from the head contract and a year to enforce.
- Zirko Redaktion9 min read
Ontario construction trust funds: directors are personally liable
Money received by a contractor on account of a contract price is a trust fund for the people who supplied the work. Since 2018 it must sit in an account in the trustee's name.
- Zirko Redaktion9 min read
GST/HST on holdback: no tax before the holdback is payable
Subsection 168(7) of the Excise Tax Act carves out holdback: tax is payable on the earlier of the day that part is paid and the day it becomes payable.
- Zirko Redaktion9 min read
Ontario holdback is released every year since 1 January 2026
Ten percent of every payment sits in holdback until liens expire. Since 1 January 2026 the owner must publish a notice within 14 days of each contract anniversary.
- Zirko Redaktion11 min read
Ontario prompt payment: 28 days, 7 days, and a new invoice rule
An owner pays within 28 days of a proper invoice, a contractor within 7 days. Since 1 January 2026 a deficient invoice is deemed proper unless the owner objects within seven days.
Zirko Redaktion9 min readQuebec RBQ licence: the number belongs on every invoice
Quebec requires a Régie du bâtiment licence to carry out construction work for others, and the licence number on estimates, bids, contracts, account statements and invoices.
- Zirko Redaktion9 min read
Subcontractor or employee: why the contract does not answer it
The Supreme Court of Canada has said there is no one conclusive test: the question is whether the person is performing the services as a person in business on their own account.
Zirko Redaktion8 min readT5018: primarily construction income means reporting your subs
Income Tax Regulations section 238 requires a return from anyone whose business income is derived primarily from construction, filed six months after the reporting period ends.
- Zirko Redaktion10 min read
WSIB in Ontario construction: sole proprietors are deemed workers
Since 1 January 2013 the Workplace Safety and Insurance Act deems every independent operator, sole proprietor, partner and executive officer in construction to be a worker.
