The GST/HST Quick Method: How It Works and When It Pays

The Quick Method is an optional, simplified way for small businesses to work out how much GST/HST to send the CRA.

How it works

1. Charge customers GST/HST at the normal rate, as usual.
2. At the end of the period, multiply your sales including GST/HST by your Quick Method rate.
3. Subtract the 1% credit (first $30,000 of sales each year) and any ITCs on capital purchases.
4. Remit the result — and keep the difference.

You don’t track input tax credits on everyday expenses; they are built into the rate.

Worked example — Ontario consultant

A consultant in Ontario bills $50,000 plus 13% HST = $56,500 for the year.

	Regular method	Quick Method
HST collected	$6,500	$6,500
ITCs on expenses ($5,000 of costs)	−$650	—
Quick Method remittance (8.8% × $56,500)	—	$4,972
1% credit on first $30,000	—	−$300
Remitted	$5,850	$4,672

The Quick Method saves $1,178 here because the consultant has few taxable expenses. A business with large taxable costs would do better with the regular method.

Common rates for services

Business located in	Sales at 5%	Sales at 13%	Sales at 15%
GST-only province (AB, BC, MB, SK, territories)	3.6%	10.5%	12.0%
Ontario	1.8%	8.8%	10.4%
Nova Scotia	1.6%	8.6%	10.2%
New Brunswick, N.L., P.E.I.	1.4%	8.4%	10.0%

Businesses that buy goods to resell (at least 40% of revenue) get lower rates. See the full tables in the Quick Method calculator.

Who can use it

• Annual taxable sales (including GST/HST and associates) of $400,000 or less
• In business for at least a year (new registrants can elect if they expect to stay under the limit)

Not eligible: accountants, bookkeepers, tax preparers, financial consultants, lawyers, actuaries, financial institutions, charities, public institutions, municipalities and some other public bodies.

How to start

File form GST74 (or elect online) before the start of the reporting period you want it to apply to. You generally have to stay on it for at least a year.