Learn how freelancers can receive payments from Canadian businesses with compliant invoicing, understand client requirements, and see how tools like Remotify simplify cross-border payments.
Working with Canadian clients is a great chance for freelancers worldwide. Canada has a strong economy, and local businesses hire international freelancers frequently for different tasks. But when it comes to getting paid, many freelancers face unexpected issues. That’s why knowing how to properly receive payments from Canadian companies will save you time, money, and frustration. This blog will detail all you need to know about getting paid from Canada, different payment methods available, and reveal a one-stop solution to making payments easier.
Before we discuss payment methods, let’s look at why Canadian businesses care about invoices. It’s not just about following rules; there are important legal and financial reasons.
Canadian companies must follow rules set by the Canada Revenue Agency (CRA), which is like the tax authority in other countries. When a business pays a freelancer, they need proper documentation to claim that expense on their taxes. Without a valid invoice, they cannot deduct the payment from their taxable income.
A proper invoice for Canadian clients should include:
If you earn over $30,000 CAD each year from Canadian clients, you may need to collect HST/GST, which is the Canadian sales tax. However, international freelancers usually don’t charge this tax because they provide services from outside Canada.
Canadian businesses must keep these invoices for at least six years to meet their record-keeping requirements. This is mandatory. The CRA can audit companies and request these documents. If a business cannot provide valid invoices for payments made, it may face penalties.
Many freelancers think getting paid from Canada will be easy. However, international payments are more complex than they appear. Here’s why:
Most traditional banks use the SWIFT system for international transfers. Although SWIFT is widely used, it has several problems:
High fees
SWIFT transfers usually pass through several banks before reaching your account. Each bank involved may charge a fee. Your Canadian client might send you $1,000, but after deducting fees from intermediary banks and the receiving bank, you could end up getting $950 or even less.
Longer processing times
SWIFT transfers usually take 1 to 5 business days, and sometimes longer. The money must go through several banks in different time zones, each with its own processing schedule.
Rejection issues
SWIFT transfers require exact information. One wrong digit in your account number, SWIFT code, or bank address can cause the payment to fail. When this occurs, the money returns to the sender, but the fees are already lost.
Currency conversion markups
Banks don’t just charge transfer fees. They also profit from currency exchange. The exchange rate you receive is usually worse than the actual market rate. This difference means you lose money when converting.
Compliance and Security Checks
Canadian financial institutions have strict anti-money laundering (AML) regulations. When a Canadian company tries to send money overseas, the bank must verify that the transaction is legitimate. This is especially true when making:
These checks aim to stop financial crime. However, they can cause delays and may block payments until extra documentation is submitted.
Let’s analyse the different ways freelancers can get paid by Canadian clients. We will discuss the advantages and disadvantages of each method.
Your Canadian client sends money from their bank to your bank using the SWIFT network.
Pros
Cons
Wise uses local bank transfers to move money, which avoids much of the SWIFT system.
Pros
Cons
Payoneer offers virtual receiving accounts in various currencies. Your client can pay you just like they would with a local Canadian bank account.
Pros
Cons
This is where Remotify makes a difference. Remotify acts as a reseller/payment intermediary. It stands between you and your Canadian client to handle the payment process professionally.
Though please remember that Remotify does not provide tax, legal, or employment advice. Freelancers remain responsible for the services they deliver and their own tax obligations.
Canadian companies appreciate Remotify because it addresses their main payment issue: they can pay in Canadian dollars through a local bank transfer. This means:
So, from a Canadian company’s point of view, they pay Remotify through a local CAD transfer, even though Remotify is an Estonian-based reseller. This simplifies their accounting and provides them with CRA-acceptable cross-border invoices suitable for accounting and record-keeping purposes.
Here’s the step-by-step process:
1. Create your proforma invoice
You log into Remotify and create a proforma invoice, which is basically a quote for your services. This includes all the details about what you’re providing and how much it costs.
2. Client pays in CAD locally
Your Canadian client gets the invoice and pays Remotify through an easy bank transfer in Canadian dollars. There is no need for an international transfer; the payment experience is similar to a domestic supplier from an operational perspective.
3. Remotify generates the official invoice
Remotify creates a CRA-acceptable cross-border invoice. This invoice is sent to your Canadian client and contains all the required details.
4. You receive your payout
After Remotify gets the payment from your client, they send your money to you using your chosen payout method. You can choose from:
5. Fast turnaround
In most cases, payouts are processed within 24 hours after payment clearance, depending on the selected payout method.
Disclaimer: Remotify acts as a payment consolidation and invoicing intermediary. Service delivery and contractual responsibility remain fully with the freelancer.
The main advantage is that your Canadian client pays in Canadian dollars. They don’t have to manage:
Meanwhile, you receive payment reliably through a method that suits you and in your preferred currency. Remotify takes care of all the currency conversion and international transfer details in the background.
Getting started with Remotify is simple:
1. Sign up
Create your account on Remotify.co. You will need to provide basic information about yourself and verify your identity. This is part of standard KYC requirements.
2. Add your client
Enter your Canadian client’s information, including their business name and contact details.
3. Create your first invoice
Fill in the details about your services and the amount. Remotify’s system guides you through this.
4. Submit for processing
Once you submit, Remotify reviews and generates the official invoice.
5. Client receives invoice
Your client gets an CRA-acceptable cross-border invoice issued by Remotify.. They can pay via local bank transfer.
6. Get paid
After your client pays, you get your funds through your chosen method.
7. Track everything
Use Remotify’s dashboard to monitor all your invoices and payments in one place.
Getting paid by Canadian businesses can be simple and affordable. While traditional methods like SWIFT transfers are still an option, they often charge high fees, have slow processing times, and may have other issues.
Services like Remotify come about as the perfect solution to these issues. By acting as a middleman and letting Canadian companies pay locally in their currency, Remotify removes much of the hassle from international freelance payments.
The key is to understand your options and choose the method that fits your situation. For ongoing relationships with Canadian clients, a smooth and reliable payment process helps you look more professional and makes your life easier.
Remotify’s fees start at 2.5% and reach 4%, based on your transaction volume. This is usually lower than the total costs of traditional international transfers when you consider all the hidden fees.
Remotify works with freelancers in most countries, though some jurisdictions are on international sanction lists. Visit their website for the latest list of supported countries.
Yes. One of Remotify’s main benefits is that you don’t need to register a formal business. You remain the provider of the services you deliver, while Remotify handles the payment part on your behalf. This is especially useful for freelancers who want to keep things simple.
In most cases, payouts are processed within 24 hours after payment clearance, depending on the selected payout method. Bank transfers might take a bit longer than PayPal or Wise.
You’re still responsible for reporting and paying taxes in your country of residence. Remotify doesn’t handle your local tax obligations; that’s between you and your tax authority. However, Remotify can provide documentation showing your income to assist with your tax filing.
Remotify mainly handles invoices in CAD, EUR, USD, and GBP. If your Canadian client wants to pay in CAD, which most do, that’s the primary use case.
Remotify’s customer service team can help with any questions your clients have. This is useful because it relieves you of the need to explain the payment setup.
Remotify follows standard payment service regulations and works with secure banking partners. They don’t keep your money indefinitely. Once your client pays, the funds are processed and sent to you quickly.
Working with Canadian clients is a great chance for freelancers worldwide. Canada has a strong economy, and local businesses hire international freelancers frequently for different tasks. But when it comes to getting paid, many freelancers face unexpected issues. That’s why knowing how to properly receive payments from Canadian companies will save you time, money, and frustration. This blog will detail all you need to know about getting paid from Canada, different payment methods available, and reveal a one-stop solution to making payments easier.
Before we discuss payment methods, let’s look at why Canadian businesses care about invoices. It’s not just about following rules; there are important legal and financial reasons.
Canadian companies must follow rules set by the Canada Revenue Agency (CRA), which is like the tax authority in other countries. When a business pays a freelancer, they need proper documentation to claim that expense on their taxes. Without a valid invoice, they cannot deduct the payment from their taxable income.
A proper invoice for Canadian clients should include:
If you earn over $30,000 CAD each year from Canadian clients, you may need to collect HST/GST, which is the Canadian sales tax. However, international freelancers usually don’t charge this tax because they provide services from outside Canada.
Canadian businesses must keep these invoices for at least six years to meet their record-keeping requirements. This is mandatory. The CRA can audit companies and request these documents. If a business cannot provide valid invoices for payments made, it may face penalties.
Many freelancers think getting paid from Canada will be easy. However, international payments are more complex than they appear. Here’s why:
Most traditional banks use the SWIFT system for international transfers. Although SWIFT is widely used, it has several problems:
High fees
SWIFT transfers usually pass through several banks before reaching your account. Each bank involved may charge a fee. Your Canadian client might send you $1,000, but after deducting fees from intermediary banks and the receiving bank, you could end up getting $950 or even less.
Longer processing times
SWIFT transfers usually take 1 to 5 business days, and sometimes longer. The money must go through several banks in different time zones, each with its own processing schedule.
Rejection issues
SWIFT transfers require exact information. One wrong digit in your account number, SWIFT code, or bank address can cause the payment to fail. When this occurs, the money returns to the sender, but the fees are already lost.
Currency conversion markups
Banks don’t just charge transfer fees. They also profit from currency exchange. The exchange rate you receive is usually worse than the actual market rate. This difference means you lose money when converting.
Compliance and Security Checks
Canadian financial institutions have strict anti-money laundering (AML) regulations. When a Canadian company tries to send money overseas, the bank must verify that the transaction is legitimate. This is especially true when making:
These checks aim to stop financial crime. However, they can cause delays and may block payments until extra documentation is submitted.
Let’s analyse the different ways freelancers can get paid by Canadian clients. We will discuss the advantages and disadvantages of each method.
Your Canadian client sends money from their bank to your bank using the SWIFT network.
Pros
Cons
Wise uses local bank transfers to move money, which avoids much of the SWIFT system.
Pros
Cons
Payoneer offers virtual receiving accounts in various currencies. Your client can pay you just like they would with a local Canadian bank account.
Pros
Cons
This is where Remotify makes a difference. Remotify acts as a reseller/payment intermediary. It stands between you and your Canadian client to handle the payment process professionally.
Though please remember that Remotify does not provide tax, legal, or employment advice. Freelancers remain responsible for the services they deliver and their own tax obligations.
Canadian companies appreciate Remotify because it addresses their main payment issue: they can pay in Canadian dollars through a local bank transfer. This means:
So, from a Canadian company’s point of view, they pay Remotify through a local CAD transfer, even though Remotify is an Estonian-based reseller. This simplifies their accounting and provides them with CRA-acceptable cross-border invoices suitable for accounting and record-keeping purposes.
Here’s the step-by-step process:
1. Create your proforma invoice
You log into Remotify and create a proforma invoice, which is basically a quote for your services. This includes all the details about what you’re providing and how much it costs.
2. Client pays in CAD locally
Your Canadian client gets the invoice and pays Remotify through an easy bank transfer in Canadian dollars. There is no need for an international transfer; the payment experience is similar to a domestic supplier from an operational perspective.
3. Remotify generates the official invoice
Remotify creates a CRA-acceptable cross-border invoice. This invoice is sent to your Canadian client and contains all the required details.
4. You receive your payout
After Remotify gets the payment from your client, they send your money to you using your chosen payout method. You can choose from:
5. Fast turnaround
In most cases, payouts are processed within 24 hours after payment clearance, depending on the selected payout method.
Disclaimer: Remotify acts as a payment consolidation and invoicing intermediary. Service delivery and contractual responsibility remain fully with the freelancer.
The main advantage is that your Canadian client pays in Canadian dollars. They don’t have to manage:
Meanwhile, you receive payment reliably through a method that suits you and in your preferred currency. Remotify takes care of all the currency conversion and international transfer details in the background.
Getting started with Remotify is simple:
1. Sign up
Create your account on Remotify.co. You will need to provide basic information about yourself and verify your identity. This is part of standard KYC requirements.
2. Add your client
Enter your Canadian client’s information, including their business name and contact details.
3. Create your first invoice
Fill in the details about your services and the amount. Remotify’s system guides you through this.
4. Submit for processing
Once you submit, Remotify reviews and generates the official invoice.
5. Client receives invoice
Your client gets an CRA-acceptable cross-border invoice issued by Remotify.. They can pay via local bank transfer.
6. Get paid
After your client pays, you get your funds through your chosen method.
7. Track everything
Use Remotify’s dashboard to monitor all your invoices and payments in one place.
Getting paid by Canadian businesses can be simple and affordable. While traditional methods like SWIFT transfers are still an option, they often charge high fees, have slow processing times, and may have other issues.
Services like Remotify come about as the perfect solution to these issues. By acting as a middleman and letting Canadian companies pay locally in their currency, Remotify removes much of the hassle from international freelance payments.
The key is to understand your options and choose the method that fits your situation. For ongoing relationships with Canadian clients, a smooth and reliable payment process helps you look more professional and makes your life easier.
Remotify’s fees start at 2.5% and reach 4%, based on your transaction volume. This is usually lower than the total costs of traditional international transfers when you consider all the hidden fees.
Remotify works with freelancers in most countries, though some jurisdictions are on international sanction lists. Visit their website for the latest list of supported countries.
Yes. One of Remotify’s main benefits is that you don’t need to register a formal business. You remain the provider of the services you deliver, while Remotify handles the payment part on your behalf. This is especially useful for freelancers who want to keep things simple.
In most cases, payouts are processed within 24 hours after payment clearance, depending on the selected payout method. Bank transfers might take a bit longer than PayPal or Wise.
You’re still responsible for reporting and paying taxes in your country of residence. Remotify doesn’t handle your local tax obligations; that’s between you and your tax authority. However, Remotify can provide documentation showing your income to assist with your tax filing.
Remotify mainly handles invoices in CAD, EUR, USD, and GBP. If your Canadian client wants to pay in CAD, which most do, that’s the primary use case.
Remotify’s customer service team can help with any questions your clients have. This is useful because it relieves you of the need to explain the payment setup.
Remotify follows standard payment service regulations and works with secure banking partners. They don’t keep your money indefinitely. Once your client pays, the funds are processed and sent to you quickly.
