Selling cut flowers to florists in Canada: tax and invoice basics

What to take away

Register a business name and get a CRA business number before you invoice a florist.
GST/HST registration is required once taxable revenues pass $30,000 over four consecutive calendar quarters.
Provincial sales tax rules differ. Ontario uses HST, BC uses GST plus PST, Quebec uses GST plus QST.
A wholesale invoice must show your GST/HST number, the buyer, date, line items, tax, and total.
Build a cost base before quoting. Florists buy on price, consistency, and delivery schedule.

Canadian cut flower business registration

A florist will not open a wholesale account with an informal cash seller. They need a supplier they can pay by cheque or transfer and claim as a business expense. That starts with registration.

Choose a legal structure. A sole proprietorship is common for a small farm. A corporation can limit liability but adds filing costs. Register the name with your province or with Corporations Canada if you incorporate federally.

Next, get a CRA business number. This is the root account for payroll, GST/HST, and corporate income tax. You can register online or by mail. Keep the confirmation letter.

Check local rules. Many municipalities require a business licence for farm gate sales. Farmers market vendors often need a stall permit and proof of insurance. The BC Ministry of Agriculture and Food publishes business and market development guidance for farm retail and stall operations.

Provincial sales tax accounts for cut flowers

Canada has federal GST and separate provincial taxes. The tax you charge depends on where you sell and where the buyer takes possession.

Provincial tax accounts for cut flowers

Province

Ontario: HST 13%
British Columbia: GST 5% + PST 7%
Alberta: GST 5%
Quebec: GST 5% + QST 9.975%
Saskatchewan: GST 5% + PST 6%
Manitoba: GST 5% + RST 7%

Tax accounts

Ontario: Combined federal and provincial tax
British Columbia: PST applies to many retail goods
Alberta: No provincial sales tax
Quebec: QST administered by Revenu Quebec
Saskatchewan: PST registration may be required
Manitoba: RST applies to many goods

Notes for cut flowers

Ontario
British Columbia
Alberta
Quebec
Saskatchewan
Manitoba

Provincial sales tax accounts

Province	Common tax accounts	Notes for cut flowers
Ontario	HST 13%	One combined federal and provincial tax
British Columbia	GST 5% + PST 7%	PST applies to many retail goods
Alberta	GST 5%	No provincial sales tax
Quebec	GST 5% + QST 9.975%	QST is administered by Revenu Quebec
Saskatchewan	GST 5% + PST 6%	PST registration may be required
Manitoba	GST 5% + RST 7%	RST applies to many goods

Most fresh cut flowers sold at retail are taxable. Some agricultural products and nursery stock may be exempt or zero rated. The exact treatment depends on the product and the buyer. Sales taxes are administered by named offices: the British Columbia Ministry of Finance administers PST, the Saskatchewan Ministry of Finance administers PST, Manitoba Finance administers RST, and Revenu Quebec administers QST. HST in Ontario is administered by the Canada Revenue Agency. Contact the administrator that applies to you for a ruling if you are unsure.

A florist buying for resale may not pay tax if they provide a valid exemption certificate. In practice, many florists simply pay the tax and claim an input tax credit. That is why your GST/HST number must appear on every invoice.

Ontario growers can review production and business resources from the Ontario Ministry of Agriculture, Food and Rural Affairs before setting up wholesale accounts: Ontario link.

Wholesale invoicing requirements for florists

A clean invoice gets paid faster. It also protects you if the Canada Revenue Agency reviews your records.

Wholesale invoice requirements

Legal business name and address
GST/HST registration number
Florist's business name and address
Invoice date and unique number
Stems, quantity, unit price, line total
Delivery charges, if any
GST/HST or QST charged
Total due and payment terms

Use a numbered invoice. Include:

Wholesale invoicing requirements

Your legal business name and address.
Your GST/HST registration number.
The florist's business name and address.
Invoice date and unique invoice number.
Description of stems, quantity, unit price, and line total.
Delivery charges, if any.
GST/HST or QST charged.
Total amount due and payment terms.

Payment terms matter. Thirty days is common for established florists. Smaller shops may pay on delivery. State your terms on the invoice. Charge interest on late payments only if you disclosed it in advance.

Keep a signed wholesale agreement. It can cover standing orders, minimum stem counts, delivery days, and rejection rules. A florist needs to know that a Thursday wedding order will arrive on Wednesday.

If you sell to a U.S. florist, different rules apply. The Asheville farm-to-florist cut flower sales questions explain how U.S. growers find accounts and what designers ask: Asheville farm-to-florist cut flower sales questions. Use that comparison if you export.

Cost records and wholesale pricing

Before you quote a florist, know your cost per stem. Inputs include seed, plugs, soil, fertilizer, mulch, fuel, packaging, and labour. Add a share of land, tools, and administration.

Wholesale pricing and cost records

50 to 70 percentof retail price florists may pay
30 dayscommon payment terms for established florists
Cost per stemcalculate before quoting a florist

A published cut flower production budget from Purdue Extension shows how to list costs and potential returns per acre: Purdue link. Adapt the categories to your Canadian prices.

Wholesale prices are usually lower than farmers market prices. A florist may pay 50 to 70 percent of retail. You need volume and repeat orders to make that work. Do not set price from a competitor's guess.

For event work, use the wedding flower pricing formula for small flower farms to build a quote from cost, not from a hoped-for margin: wedding flower pricing formula. That formula helps you price buckets, arrangements, and delivery.

Record every sale. Keep receipts for every input. If you sell at a farmers market, track stall fees and display costs. The farmers market model is a common retail outlet, and stall fees are a typical startup cost.

Alberta growers with a short frost-free window can extend the cut flower season without a heated greenhouse using low tunnels and hardy species: extend the cut flower season. A longer harvest window spreads fixed costs over more stems.

If you grow peonies, check when to plant peonies for cut flower harvest before you promise spring stems: when to plant peonies. Planting time affects the first harvest year and your ability to supply florists.

Common questions

Do I need to register for GST/HST before selling to a florist?

You must register once your taxable revenues exceed $30,000 over four consecutive calendar quarters. You can register voluntarily below that threshold. A florist may prefer to see a GST/HST number on your invoice.

Can a florist buy cut flowers tax free for resale?

In some provinces, a valid resale or exemption certificate removes the tax. In others, the florist pays tax and claims an input tax credit. Ask the buyer which process they use.

What invoice details does a florist need?

Include your legal name, GST/HST number, invoice date, unique invoice number, buyer name, stem descriptions, quantities, prices, tax, and total. Payment terms should also appear.

Do I need a business licence for a farmers market stall?

Many municipalities and market associations require a vendor permit and liability insurance. Check with the market manager and your local business licensing office before your first sale.