# Holdfast Invoice — sources (fetched 2026-08-26) Fieldledger is not the CRA, not a law firm, and this file is not tax or legal advice. Rates and holdback figures below were checked against the linked statutes and CRA pages on **2026-08-26**. Legislation moves. Confirm before you rely on a number. --- ## 1. GST / HST / PST / QST (2026) **Primary source (CRA):** [GST/HST calculator (and rates)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html) Page last modified **2025-04-01**. Table as published: | Province / territory | GST / HST | PST / QST | |---|---|---| | Alberta | 5% GST | 0% | | British Columbia | 5% GST | 7% PST | | Manitoba | 5% GST | 7% PST | | New Brunswick | 15% HST | N/A | | Newfoundland and Labrador | 15% HST | N/A | | Northwest Territories | 5% GST | 0% | | Nova Scotia | **14% HST** | N/A | | Nunavut | 5% GST | 0% | | Ontario | 13% HST | N/A | | Quebec | 5% GST | 9.975% QST | | Prince Edward Island | 15% HST | N/A | | Saskatchewan | 5% GST | 6% PST | | Yukon | 5% GST | 0% | **Nova Scotia:** CRA: “As of April 1, 2025, the HST rate has decreased to 14% in Nova Scotia.” Historical column “On or after April 1, 2025” lists NS at 14%; “October 1, 2016 to March 31, 2025” lists NS at 15%. **PST on construction:** BC / SK / MB PST is **not** automatically payable on every construction invoice. Labour is often exempt; materials are often taxable. Holdfast defaults to GST/HST on the full this-draw gross, and PST on **materials only** (labour off). Toggle it. Confirm with your provincial finance ministry. **Quebec:** QST 9.975% is calculated on the consideration **excluding** GST (combined 14.975%, not tax-on-tax). CRA calculator lists GST 5% + Prov. 9.975%. Secondary cross-check: [TaxTips.ca 2026 sales tax rates](https://www.taxtips.ca/salestaxes/sales-tax-rates-2026.htm) matches the CRA table. --- ## 2. Product rule: tax on GROSS before holdback Holdfast’s default math (used by the calculator and every invoice): ``` this-draw gross = labour + materials this draw tax = GST/HST (and QST/PST if on) on the GROSS holdback withheld = holdback% × GROSS (not on tax) amount due now = gross + tax − holdback holdback due later = the withheld holdback (pre-tax dollars) holdback due date = invoice date + provincial release window (days) ``` Worked NB example is in the README. ### What CRA actually says (timing, not the invoice arithmetic) This is **not** a contradiction of “tax is calculated on the gross.” It is a remittance-timing rule. Quote it, then still implement gross-then-holdback as the default, with a note to verify. **CRA — GST/HST and home construction, “Holdbacks”** > If, in accordance with federal or provincial law or a written agreement for the construction, renovation, alteration, or repair of real property, a purchaser keeps a part of a payment as a holdback until the work is satisfactorily done, the GST/HST on the holdback amount becomes payable on the earlier of: > > - the day the purchaser pays you the amount of the holdback > - the day the holdback period expires > > The GST/HST is collectible by you on the earlier of the above dates, **even if you already issued an invoice and charged the GST/HST for the holdback amount.** **Excise Tax Act, s. 168(7)** > Notwithstanding subsections (1), (2), (3), (5) and (6), where the recipient of a taxable supply retains, pursuant to > (a) an Act of Parliament or of the legislature of a province, or > (b) an agreement in writing for the construction, renovation or alteration of, or repair to, any real property or any ship or other marine vessel, > a part of the consideration for the supply pending full and satisfactory performance of the supply, or any part thereof, tax under this Division, calculated on the value of that part of the consideration, is payable on the earlier of the day that part is paid and the day it becomes payable. **Also:** [RC4052 GST/HST Information for the Home Construction Industry](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4052/rc4052-gst-hst-information-home-construction-industry.html) repeats the same holdback timing rule. **What this means for a trades invoice:** Holdfast **prints** HST/GST on the full this-draw gross (industry practice; matches “charged the GST/HST for the holdback amount”). CRA says you may not have to **remit** the tax that sits on the holdback slice until the holdback is paid or the holdback period expires. Confirm with your accountant. Holdfast is not tax advice. **Holdback is a percentage of the value of work/materials, not of tax.** Statutes speak of “10% of the value of the services or materials supplied” / “10% of the contract price.” Tax is extra. Holdfast withholds holdback from the pre-tax gross and still bills tax on that gross. --- ## 3. Holdback % and release window by province “Release window” in this app = the number of days added to the **invoice date** to print a “holdback due on” date. That is a **working estimate for a progress invoice**, not a legal trigger. Real holdback clocks usually start from substantial performance, completion, abandonment, termination, or a certificate — **not** from the date you issued a draw invoice. The printed date is a reminder, not a release entitlement. Status key: - **VERIFIED** — read in the statute (or SCC quoting the statute) on 2026-08-26. - **UNVERIFIED** — not independently confirmed in legislation for this build. The app will not pretend it is sure. ### New Brunswick — VERIFIED - **Statute:** *Construction Remedies Act*, SNB 2020, c. 29 - **Text:** - **Holdback:** **10%** of the value of services or materials as actually supplied. s. 34(1), s. 34(3) (deduct 10% from any payment). - **Crown / bonded:** **5%** where the owner is the Crown **and** the contractor must provide a labour-and-material payment bond **and** a performance bond under s. 83(4). s. 34(4). Local-government work stays 10% (ConstructNB / McInnes Cooper holdback deck). - **Window:** **60 days** after certificate/declaration of substantial performance (s. 47(1)), or 60 days after completion, abandonment or termination if no certificate (s. 47(2)). Finishing holdback: 60 days after completion/abandonment/termination (s. 47(3)). - **Bonds on Crown work:** generally required above $500,000 (GNB interpretation deck; confirm current threshold). - Firm commentary: [Stewart McKelvey — end of the Mechanics’ Lien Act](https://stewartmckelvey.com/thought-leadership/the-end-of-the-mechanics-lien-act/); [McInnes Cooper — 7 key changes](https://www.mcinnescooper.com/publications/n-b-construction-remedies-act-7-key-changes-from-the-mechanics-lien-act/); [Cox & Palmer](https://coxandpalmerlaw.com/publication/10672/). ### Ontario — VERIFIED (10%, 60-day lien clock; 2026 annual-release overlay) - **Statute:** *Construction Act*, R.S.O. 1990, c. C.30 - **Text:** - **Holdback:** **10%.** Definition: “holdback” means the 10 per cent of the value of the services or materials supplied under a contract or subcontract required to be withheld from payment by Part IV. s. 22 basic holdback (historical consolidation quoted 10% of the price of the services or materials as actually supplied). - **Window used in-app:** **60 days** (lien preservation / classic basic-holdback clock after substantial performance). **Not** a guarantee of payout on day 60 of a progress invoice. - **Proper invoice:** s. 6.1 (contractor name and address; invoice date and period; contract identification; description; amount payable; payment-recipient details; plus any contract extras). s. 6.1(2) (2026): an invoice is **deemed** a proper invoice unless the owner gives written notice of deficiency within **7 days**. s. 6.2: prompt payment is subject to holdback. - **2026 overlay (do not ignore):** as of 1 January 2026, **annual release of accrued 10% basic holdback is mandatory** on contracts longer than one year. Owner publishes a Notice of Annual Release of Holdback within 14 days of each contract anniversary, then pays accrued holdback no earlier than 60 days and no later than 74 days after publication, if no lien is preserved or perfected. Sources: [WeirFoulds](https://www.weirfoulds.com/ontarios-construction-act-changes-what-you-need-to-know-in-2026); [Blakes](https://www.blakes.com/insights/amendments-to-ontario-s-construction-act-now-in-force/); [OMH](https://www.omh.ca/news-and-insights/publication/2026-changes-to-holdback---amendments-to-the-construction-act). Holdfast v1 does **not** automate annual-release notices. ### British Columbia — VERIFIED - **Statute:** *Builders Lien Act*, SBC 1997, c. 45 - **Text:** (current to 18 August 2026) - **Holdback:** **10%** of the greater of (a) the value of the work or material as actually provided and (b) the amount of any payment on account. s. 4(1). - **Holdback period:** expires at the end of **55 days** after a certificate of completion (s. 8(1)), or 55 days after head-contract completion/abandonment/termination or improvement completion/abandonment (s. 8(2)). Payment may be made after expiry (s. 8(4)). - **Lien filing:** **45 days** (s. 20). Do not confuse 45 (file) with 55 (holdback release clock). - Commentary: [BCLI ch. 5](https://www.bcli.org/bcli-resources/chapter-5-the-holdback/); [BCLI ch. 11](https://www.bcli.org/bcli-resources/chapter-11-the-running-of-time-for-the-filing-of-liens-and-release-of-holdback/). ### Alberta — VERIFIED (standard jobs) - **Statute:** *Prompt Payment and Construction Lien Act*, RSA 2000, c. P-26.4 - **Text:** - **Holdback:** **10%** of the value of the work actually done and materials actually furnished. s. 18(1). - **Window:** **60 days** from the date a certificate of substantial performance is issued, or (if none) from completion of the contract. s. 18(1). - **Exceptions (app notes these, does not switch automatically):** **90 days** for oil or gas well / well-site improvements (s. 18(1.1)) and for improvements primarily related to concrete (s. 18(1.2)). - Commentary: [McCarthy Tétrault — Alberta lien fund](https://www.mccarthy.ca/en/insights/blogs/canadian-construction-law-blog/alberta-lien-fund-and-holdback-system-explained); [Alberta.ca prompt payment](https://www.alberta.ca/prompt-payment-rules-for-construction-industry). ### Nova Scotia — VERIFIED - **Statute:** *Builders’ Lien Act*, RSNS 1989, c. 277 - **Text:** - **Holdback:** **10%** of the value of the work, service and materials actually done, placed or furnished, retained for **60 days after the contract is substantially performed**. s. 13(2). Finishing holdback: 10% of remaining services/materials (s. 13(3)). - **Lien registration:** 60 days (s. 24). Registered liens expire 105 days after completion unless an action is started (s. 26) — that 105-day figure is **not** the holdback window. ### Prince Edward Island — VERIFIED - **Statute:** *Mechanics’ Lien Act*, RSPEI 1988, c. M-4 - **Text:** (office consolidation current to 1 January 2009 — confirm King’s Printer for later amendments) - **Holdback:** **20%** of the value of work and material, retained **60 days** after completion or abandonment. s. 14(1). - **If value exceeds $15,000:** **15%** instead of 20%, but not less than the 20%-of-$15,000 floor. s. 14(3). - Holdfast picks 20% or 15% from the job’s contract value. Confirm the floor on mixed-draw jobs. ### Newfoundland and Labrador — VERIFIED - **Statute:** *Mechanics’ Lien Act*, RSNL 1990, c. M-3 - **Text:** (King’s Printer, 2026) - **Holdback:** **10%** of the value of the work and materials, retained **30 days** after completion or abandonment. s. 12(1). - **Lien registration:** 30 days (s. 22). Action generally within 90 days of completion (s. 24). ### Saskatchewan — VERIFIED (10%); window 40 days from statute structure / SK Justice - **Statute:** *The Builders’ Lien Act*, SS 1984-85-86, c. B-7.1 - **Text:** - **Holdback:** **10%.** SK Justice summary: “An owner must hold back 10 per cent of the value of the work done, services rendered or materials supplied.” Act Part IV / s. 34 defines holdback. - **Window used in-app:** **40 days** (lien expiry / registration, s. 49 — shortest prairie preservation window). Holdback payout is tied to substantial-performance certificates (ss. 43–45), not to the invoice date. - **$50,000 threshold:** reported by trade sites as “statutory holdback only on contracts $50,000+.” **Not independently confirmed in the statute text during this fetch.** Treated as **UNVERIFIED**. App still applies 10% and lets you turn holdback off. ### Manitoba — holdback % VERIFIED 7.5%; window CAUTION - **Statute:** *The Builders’ Liens Act*, CCSM c. B91 - **Text:** / CanLII - **Holdback:** **7.5%.** Supreme Court of Canada in *Stuart Olson Dominion Construction Ltd. v. Structal Heavy Steel*, 2015 SCC 43, quoting s. 24(1): the person primarily liable must deduct and retain **7.5 percent** of the contract price (or of the value of the work). - **Window in that 2015 quotation:** holdback retained for at least **40 days** after substantial performance, completion, or abandonment. - **2024 overlay:** Bill 38 (prompt payment) extended the **lien preservation** period from 40 to **60 days** effective 1 April 2024 (s. 43 as amended). Whether s. 24’s holdback *retention* period moved in lockstep was **not re-read in the current consolidation for this build**. - **App default:** 7.5% and **60 days**, labelled **verify the current s. 24 window**. Not sold as sure. ### Quebec — VERIFIED (no statutory holdback %) - **Statute:** *Civil Code of Québec*, art. 2727 (legal hypothec of construction) — publish within **30 days** of the end of the work. - There is **no** automatic statutory holdback percentage on private work. Retention (*retenue de garantie*) is **contractual**. CCQ arts. 2111 / 2123 give narrow retention rights, not a 10% scheme. - Commentary: [Poncé Avocats](https://ponceavocats.ca/en/holdback-construction-quebec/). - **App default:** 0% holdback, 30-day hypothec reminder. User may type a contractual %. ### Yukon, Northwest Territories, Nunavut — UNVERIFIED Secondary tables disagree (some list 10%; some say holdback is purely contractual). **Not independently confirmed in the territorial statutes for this build.** - YT *Builders Lien Act*, RSY 2002, c. 18 — (link check on use) - NT *Builders’ Lien Act*, SNWT 2023, c. 24 - NU *Mechanics Lien Act*, RSNWT (Nu) 1988, c. M-7 **App:** holdback % and days are **blank until the user types them**. Badge: UNVERIFIED. The calculator will not invent 10%. --- ## 4. What this product does not claim - Not CRA-approved. No CRA logo, no “Canada Revenue Agency” lockup. - Not tax, lien, or legal advice. Disclaimer is on the site and on every invoice. - Holdback clocks in real life start from substantial performance / completion / a certificate, not from “I issued draw 1 today.” - PST/QST applicability on a given labour or material line is on you. - US retainage is a different animal. This app is Canadian statutory holdback only. --- ## 5. Fetch log | Item | Fetched | Result | |---|---|---| | CRA GST/HST calculator | 2026-08-26 | Rates table + NS 14% since 2025-04-01 | | CRA home construction / holdbacks | 2026-08-26 | Timing rule quoted above | | Excise Tax Act s. 168(7) | 2026-08-26 | Quoted | | NB Construction Remedies Act | 2026-08-26 | ss. 34, 47, 34(4) | | BC Builders Lien Act | 2026-08-26 | ss. 4, 8, 20; current to 2026-08-18 | | NS Builders’ Lien Act PDF | 2026-08-26 | s. 13 | | PEI Mechanics’ Lien Act PDF | 2026-08-26 | s. 14 | | NL Mechanics’ Lien Act | 2026-08-26 | s. 12 | | Ontario Construction Act (ontario.ca) | 2026-08-26 | s. 6.1, holdback definition, s. 22; 2026 annual release from firm bulletins | | AB PPCLA (CanLII) | 2026-08-26 | s. 18 10% / 60 / 90-day exceptions | | MB via SCC 2015 SCC 43 | 2026-08-26 | 7.5%; 40-day historical window | | SK Justice + Act structure | 2026-08-26 | 10%; 40-day lien; $50k UNVERIFIED | | QC secondary + CCQ 2727 | 2026-08-26 | no statutory % | | YT / NT / NU statutes | 2026-08-26 | UNVERIFIED |