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How to get paid by international clients from Canada

By FastBuySale Newsroom · 9 Nov 2026 · 20m ago

Why international payments need a plan

Canadian freelancers, consultants and small businesses increasingly work for clients in the United States, Europe and beyond. Getting paid sounds simple, but cross-border payments bring extra costs, currency risk, tax reporting and scam risks that domestic payments do not. A little planning before the first invoice can save hundreds of dollars a year and avoid tax headaches.

This guide gives numbered steps based on official Canadian sources, including the Bank of Canada, the Canada Revenue Agency and FINTRAC. It is general information and does not promise any income. Fees and rules change, so check current terms before you rely on them.

Step 1: agree payment terms in the contract

Before starting work, agree in writing on the currency, the amount or rate, payment method, due date, who pays transfer fees and what happens if payment is late. Many disputes start because a client assumed it would pay in its own currency while the freelancer expected Canadian dollars, or because intermediary bank fees reduced the amount received.

Example: Maya, a designer in Halifax, quotes a US client 2,000 US dollars per project, payable within 15 days, with the client covering its own bank's sending fees. Her contract states that late payments after 30 days incur a small monthly charge.

Step 2: decide which currency to invoice in

Invoicing in the client's currency is often easier for the client and can win work, but you carry the exchange rate risk. Invoicing in Canadian dollars moves the risk to the client. Some freelancers keep a US dollar account to hold US income and convert only when rates are favourable or when they need Canadian dollars.

Step 3: choose a payment method

International wire transfer. Widely accepted and suitable for large payments. Costs can include the client's sending fee, intermediary bank fees and your bank's receiving fee, plus the exchange margin if converted.

Online money transfer services. Often lower fees and narrower exchange margins for small and medium payments. Check that the provider is registered with FINTRAC as a money services business.

Payment platforms and card processors. Convenient for clients and quick, but percentage fees and conversion margins can be higher.

Foreign currency accounts. A US dollar account at a Canadian bank lets you receive and hold US funds without immediate conversion.

Step 4: compare the true cost

The true cost is the fees plus the exchange rate margin, which is the difference between the rate you get and the mid-market rate. The Bank of Canada publishes daily indicative exchange rates that you can use as a benchmark.

Worked example: a client sends 3,000 US dollars. Provider A charges no fee but converts at a rate 2.5 percent below the Bank of Canada rate. Provider B charges a 10 dollar fee and converts at a rate 0.5 percent below. If the Bank of Canada rate is 1.38, Provider A gives about 4,036 Canadian dollars and Provider B about 4,119 Canadian dollars, minus a fee of roughly 14 Canadian dollars, or about 4,105. The no-fee option costs around 69 dollars more. The percentage calculator linked on this page helps compare offers.

Step 5: send a clear, compliant invoice

Include your legal or business name, address, the client's details, invoice number and date, description of services, amount and currency, payment instructions and due date. If you are registered for GST/HST, include your registration number and show whether tax is charged or zero-rated.

Step 6: handle GST/HST correctly

You generally need to register for GST/HST once your worldwide taxable supplies, including zero-rated supplies, exceed 30,000 dollars in a single calendar quarter or over four consecutive calendar quarters. Many services supplied to non-residents are zero-rated, meaning tax is charged at 0 percent, so foreign clients often pay no GST/HST. However, some services are excluded from zero-rating, such as certain services relating to real property in Canada or services rendered to individuals while they are in Canada. Being registered lets you claim input tax credits for GST/HST paid on business expenses, even when your sales are zero-rated.

Step 7: report the income in Canadian dollars

Canadian residents are taxed on their worldwide income. Report foreign business income on Form T2125 in Canadian dollars. The CRA generally accepts the Bank of Canada exchange rate on the day you received the income, or an annual average rate when income is received throughout the year, as long as you use a method consistently. Keep a record of the rate used for each payment.

If the client's country withholds tax on your payment, you may be able to claim a foreign tax credit in Canada, and tax treaties may reduce or remove the withholding when the right forms are provided. US clients may ask you for a form certifying that you are a non-US person.

Step 8: keep records for FINTRAC and the CRA

Banks and other reporting entities must report international electronic funds transfers of 10,000 dollars or more to FINTRAC, Canada's financial intelligence unit. This is routine and not a sign of wrongdoing, but you should keep invoices and contracts that match each payment. Separately, if you hold foreign bank accounts or other specified foreign property with a total cost of more than 100,000 dollars at any time in the year, you may need to file Form T1135 with the CRA.

Step 9: protect yourself from payment scams

Overpayment scams. A new client sends more than the invoice and asks you to refund the difference. The original payment is later reversed.

Fake payment notifications. Emails claiming that a payment is pending until you pay a fee or upgrade an account.

Account takeover and changed instructions. Messages asking you to update payment details or pay a supplier on the client's behalf.

For new clients, consider asking for a deposit before work starts, use payment methods with clear records and never send money back from a payment that has not fully cleared.

Step 10: manage time zones and late payments

Agree on deadlines in a specific time zone and include it in the contract. The time zone converter linked on this page helps with meetings and due dates. Send polite reminders before and after the due date, and keep communication in writing. For serious non-payment, stop further work and consider whether the amount justifies legal steps in the client's jurisdiction.

Step 11: plan for currency swings and tax instalments

If most of your income arrives in US dollars or euros, your Canadian dollar income will move with exchange rates even when your prices stay the same. A strong Canadian dollar can cut your income by several percent in a few months. Some freelancers build a small buffer into foreign currency prices, review rates in each new contract or convert regularly rather than all at once to smooth out swings.

Foreign clients do not withhold Canadian tax, so set aside part of each payment for income tax, CPP contributions and any GST/HST owing. If your tax owing exceeds the CRA's instalment threshold, you may be asked to pay quarterly instalments the following year. Keeping a separate savings account for tax money makes those payments much easier.

Printable checklist

Contract: currency, amount, method, due date and fee responsibility agreed?

Method: wire, money transfer service, payment platform or foreign currency account chosen after comparing total cost?

Invoice: complete details, GST/HST number and treatment shown?

GST/HST: registered if over the threshold; zero-rating confirmed for my service?

Income tax: amounts converted to Canadian dollars with a consistent rate; T2125 records kept?

Reporting: T1135 checked if holding foreign accounts; invoices kept to match transfers?

Safety: deposit for new clients; no refunds of uncleared overpayments?

The bottom line

Getting paid by international clients from Canada works smoothly when terms are clear, payment costs are compared and records are kept in Canadian dollars. Use the Bank of Canada rates as a benchmark, follow CRA rules for GST/HST and income reporting, and watch for payment scams. This guide is general information and not tax advice.

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