Tax & Accounting Records
This page provides an overview of Goodlawyer transaction documentation to help Goodlawyers reconcile their accounting and tax requirements.
For more information about how getting paid on Goodlawyer actually works, please read our Invoicing, Payments, & Collections page.
Downloading Your Transactions Records
Goodlawyers can download individual PDF records of all their Goodlawyer transactions from their Billings page: https://lawyer.goodlawyer.ca/invoices
👀 Reading Your Invoices!
Key Terms on individual transaction records are defined below.
- Client and Good Lawyer Columns
- The left column shows the Client.
- The right column shows the Good Lawyer/Good Lawyer’s legal entity and their respective tax account numbers.
- Line Item
- The taxable line items including the Legal Fee and Goodlawyer’s Platform Fee.
- Any non-taxable line items including government fees or disbursements.
- Client Records
- A detailed transaction breakdown for the client’s record-keeping purposes. Goodlawyers should not use this information for their record-keeping.
- Lawyer Records
- A detailed transaction breakdown for the Good Lawyer’s record-keeping purposes.
- Gross Legal Subtotal
- The sum of the Legal Fees and non-taxable line items.
- Legal Fee Tax
- The amount of total sales tax charged to the client and owed to the Good Lawyer.
- Gross Legal Total
- The sum owed to the Good Lawyer (i.e., Gross Legal Subtotal + Legal Fee Tax + non-taxable line items).
- Master Service Fee
- Fees owed by Good Lawyer to Goodlawyer as defined in Fractional General Counsel Terms of Service.
- NOTE: The Master Service Fee paid by lawyers does not impact your revenue — you should account for the Master Service Fee as a business expense.
- Master Service Fee Tax
- The amount of sales tax owed by the Good Lawyer to Goodlawyer based on the appropriate jurisdictional sales tax multiplied by the Master Service Fees.
- Master Service Fee Total
- The sum of the Master Service Fee and Master Service Fee Tax owed to Goodlawyer from the Good Lawyer.
- Net Transfer to the Good Lawyer
- Gross Legal Total - Master Service Fee Total.
Sales Tax on Legal Services in Canada
In Canada, legal services may be subject to Provincial Sales Tax (PST), Harmonized Sales Tax (HST), or Goods and Services Tax (GST), depending on the province where the client is located or where the legal services are being used. It is important for both lawyers and clients to understand when and how these taxes apply to ensure compliance with tax regulations.
When Sales Tax Applies to Legal Services
The application of PST, HST, or GST to legal services depends on the province in which the client operates and how the legal work is connected to that jurisdiction.
- Legal Services Provided to Clients in HST Provinces (Ontario, New Brunswick, Newfoundland & Labrador, Nova Scotia, PEI)
- HST (13–15%) applies to all legal services provided to clients based in these provinces.
- Lawyers, whether located in or outside the province, must charge HST on legal fees for clients operating in these jurisdictions.
- Legal Services Provided to Clients in GST-Only Provinces (Alberta, Northwest Territories, Nunavut, Yukon)
- Only GST (5%) applies to legal services in these provinces.
- There is no additional provincial sales tax on legal fees.
- Legal Services Provided to Clients in PST Provinces (British Columbia, Saskatchewan, Manitoba, Quebec)
- In addition to GST (5%), legal services may also be subject to PST, depending on the province’s tax rules:
- British Columbia (7% PST): PST applies to legal services if they relate to the client’s business presence, activities, or contracts in B.C.
- Saskatchewan (6% PST): Legal services provided to clients in Saskatchewan are generally taxable.
- Manitoba (7% RST - Retail Sales Tax): Legal services are subject to provincial tax.
- Quebec (9.975% QST): Lawyers providing services to Quebec-based clients must charge QST on legal fees.
- Legal Services Provided to Clients Outside Canada
- In most cases, legal services provided to non-Canadian clients are zero-rated (0% GST/HST) if they relate to matters outside of Canada.
What This Means for Lawyers and Clients
- If a lawyer provides services to a client in a province where HST or PST applies, they must charge and collect the applicable tax.
- If there is uncertainty about the tax application, the client assumes the risk of any future tax consequences if PST/HST is later deemed applicable by the provincial tax authority.
❗Disclaimer
Neither Goodlawyer nor any Goodlawyer Representative has made or makes any express or implied representation or warranty as to the accuracy or completeness of any harmonized sales tax (HST), provincial sales tax (PST), goods and services tax (GST), value-added tax, use and excise taxes, and any other similar taxes, duties, and charges of any kind imposed by any governmental authority (collectively, "Indirect Taxes") in connection with the delivery of Legal Services pursuant to a Legal Service Contract. Lawyer shall be responsible to remit all Indirect Taxes to the appropriate governmental authority in a timely manner. Lawyer acknowledges that it has not relied on any representation or warranty from Goodlawyer nor any Goodlawyer Representative in determining its liability for Indirect Taxes and neither Goodlawyer nor any Goodlawyer Representative shall have liability to Lawyer or any other Person with respect to any Indirect Taxes. [Capitalized terms used but not defined herein shall have the meaning given to such term in the Terms of Service]