What is the GST/HST Quick Method and should I use it?

The Quick Method is a simplified way to calculate and remit GST/HST, designed for small businesses with annual worldwide revenues under C$400,000 (before GST/HST). Instead of tracking every ITC, you pay a fixed percentage of your total GST/HST-included revenue. The remittance rates depend on your province and type of business: **For service businesses (HST provinces — e.g., Ontario at 13% HST):** - Remit approximately 8.8% of HST-included revenue - (Instead of 13% collected minus all ITCs) **For goods-selling businesses:** - Lower rates apply (typically around 0–1.8% for businesses with a mix of zero-rated and taxable supplies) **Advantages:** - Less paperwork — no need to track every ITC - Often results in lower net GST/HST remittance for service businesses with low input costs - 1% credit on the first C$30,000 of eligible supplies per year **Disadvantages:** - If you have high input costs (expensive equipment, subcontractors), the regular method may be better - You cannot claim ITCs (except for purchases of real property and certain capital purchases) To use the Quick Method, you must elect by filing with the CRA before your first filing period ends.

  • Available to businesses with under C$400,000 annual revenue
  • Remit a fixed % of total GST/HST-included revenue — no ITC tracking
  • Service businesses in HST provinces often save money versus regular method
  • 1% bonus credit on first C$30,000 of eligible supplies
  • Must formally elect to use Quick Method with the CRA

Related Questions

  • How do I file my GST/HST return in Canada?
  • When do I need to register for GST/HST in Canada?
  • What are Input Tax Credits (ITCs) and how do I claim them?