You can download the CRA tax guide below.
https://solidtax.ca/wp-content/uploads/2022/09/rc4058-20e-HST-Quick-Method.pdf
The quick method is a simplified way that helps small businesses calculate their net tax for GST/HST purposes.
When using it, you still charge the GST (5%) and HST (based on the applicable rate on your taxable supplies of goods and services).
However, when you need to calculate the amount of GST/HST to remit, multiply the revenue from your supplies (including the GST/HST) for the reporting period using the quick method remittance rate, or rates, that apply to your situation.
Because you remittance rates for the quick methods are less than the applicable rates of GST/HST that I charge, that means you remit only a part of the tax that I collect, or is collectible. To a certain extent, it can save you on taxes every year.
For example, you have a restaurant in Ontario and my revenue is $100. You use it to calculate my GST/HST, you still need to charge your clients 13%. Using it, your GST/HST remit is $100*1.13*8.8%=9.94.
Can I choose It?
If you want to use quick methods, you have to meet all of the following conditions:
- You have been in business continuously throughout the 365-day period ending immediately before your current reporting period.
- You did not revoke an election of the quick methods or the simplified method for claiming ITCs during that 365-day period.
- Your revenues (including the GST/HST) from annual worldwide taxable supplies, (including zero-rated supplies) and those of your associates, are not more than $400,000.
- You are not operating a business type listed under Exceptions.
Who cannot use the quick methods?
- persons who provide bookkeeping, financial consulting, tax consulting, or tax return preparation services in the course of the person’s commercial activity
- persons who provide legal, accounting, or actuarial services in the course of their professional practice
- listed financial institutions
- charities
- public institutions
- non–profit organizations with at least 40% government funding in the year (qualifying non–profit organizations)
- municipalities or local authorities designated as a municipality
- public colleges, school authorities, or universities that are established and operated other than for profit
- hospital authorities, facility operators, or external supplier
When can I make the election?
| Annual GST/HST returns | The first day of the second fiscal quarter |
| Monthly or quarterly GST/HST returns | The due date for the return for the reporting period (in which you begin using the quick method). |
| First day of a GST/HST reporting period (Never use any method before) | Indicate the effective date to use the quick method |
| Used the quick method before and revoked it | Must wait at least one year to choose it again |
How can I elect to use the quick method? And when can I revoke it?
You can elect to use the quick method by using online services in:
- My Business Account, if you are a business owner
- Represent a Client, if you are an authorized representative
- You can also elect to use the quick method by filling out Form GST74, Election and Revocation of an Election to Use the Quick Method of Accounting.
If you want to revoke my election, you can also use the two methods above .
