https:\/\/solidtax.ca\/wp-content\/uploads\/2022\/09\/rc4058-20e-HST-Quick-Method.pdf<\/a><\/p>\n <\/p>\n
The quick method is a simplified way that helps small businesses calculate their net tax for GST\/HST purposes.<\/p>\n
When using it, you still charge the GST (5%) and HST (based on the applicable rate on your taxable supplies of goods and services).<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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Can I choose It?<\/h4>\n
If you want to use quick methods, you have to meet all <\/strong>of the following conditions:<\/p>\n\n- You have been in business continuously throughout the 365-day period ending immediately before your current reporting period.<\/li>\n
- You did not revoke an election of the quick methods or the simplified method for claiming ITCs during that 365-day period.<\/li>\n
- 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.<\/li>\n
- You are not operating a business type listed under Exceptions.<\/li>\n<\/ul>\n
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