A construction invoice that handles tax and holdback
Most invoice templates are built for selling a product: description, quantity, price, tax, done. Construction is not that. You bill against work completed, tax changes with the province, and on many jobs a percentage is withheld from every payment and released much later. This one does all three, and every formula is visible so you can check it.
Excel / Google Sheets compatible · no sign-up required
Three steps to a working document
Set the province once
Type the two-letter code in the province cell and the tax rate comes from the lookup table beside it — 5% in Alberta, 13% in Ontario, GST plus PST where both apply. The table is on the sheet, so when a rate changes you edit one cell rather than hunting through formulas.
Bill the work, not the job
One line per item of work completed this period, with the quantity and rate you agreed. A client who can see what moved since the last invoice queries it far less often than one handed a single number.
Withhold holdback, don't forget it
The holdback line subtracts a percentage of the pre-tax subtotal and shows it as its own figure. That is the point: it is money you have earned and have not been paid yet, and it belongs somewhere you will see it again rather than quietly missing from a total.
The holdback percentage, what it is calculated on, and when it can be released are set by your contract and by your province's construction or builders' lien legislation — not by this spreadsheet. The 10% shown is a common figure, not a rule. Confirm the basis with your accountant, and check how PST applies to construction work where you operate, because it differs by province.
When the spreadsheet stops scaling
In BuildersBridge the invoice is built from the estimate and the work actually logged against the job, with the province's tax already applied and holdback carried per project rather than recalculated each time.
See how it works in BuildersBridgeCommon questions
What should a construction invoice include?
Your business and contact details, an invoice number and date, the client and the project, the work completed in this period as separate lines, the subtotal, sales tax for the job's province, any holdback withheld, the total due, and your payment terms. On a contract with a schedule of values, bill against the same lines every period so the client can follow the running total.
How do I show holdback on an invoice?
As its own line that subtracts from the total, after tax has been calculated, with the percentage visible. Do not simply reduce the amount billed — that loses the record of what you are still owed. This template calculates it on the pre-tax subtotal, which is the common treatment, but your contract and provincial legislation govern.
Is an invoice the same as a pay application?
No. An invoice states what is owed. A pay application argues it, with the schedule of values, percentages complete and supporting documents attached for the owner or lender to verify. On larger contracts you will submit pay applications; on smaller work an invoice is usually enough.
Does this work in Google Sheets?
Yes. Upload the .xlsx to Google Drive and open it with Sheets. The VLOOKUP that pulls the provincial tax rate carries over unchanged.