{"id":1634,"date":"2022-12-20T22:24:02","date_gmt":"2022-12-20T22:24:02","guid":{"rendered":"https:\/\/solidtax.ca\/?post_type=ht_kb&p=1634"},"modified":"2023-01-12T18:12:00","modified_gmt":"2023-01-12T18:12:00","slug":"quick-method-examples","status":"publish","type":"ht_kb","link":"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/","title":{"rendered":"Quick Method Examples"},"content":{"rendered":"

CRA reference:
\nhttps:\/\/solidtax.ca\/wp-content\/uploads\/2022\/09\/rc4058-20e-HST-Quick-Method.pdf<\/a><\/p>\n

If I choose the quick method, can I claim all my input tax credit? (ITCs)<\/h4>\n

When you use the quick method, you cannot<\/strong> apply for an ITC for most purchases. This is because the amount of tax you keep approximates the ITC I would otherwise have claimed.<\/p>\n

However, you are eligible to claim an ITC for certain purchases, such as land purchases and purchases for which you can claim a capital cost allowance for income tax purposes, such as computers, vehicles and other large equipment and machinery. More eligibility details:<\/p>\n

For each fiscal year, you are entitled to a 1% credit on the first $30,000<\/strong> of your eligible supplies (including GST\/HST), for which you must charge at a 5% rate for GST or HST at the rate applicable for each fiscal year.<\/p>\n

For example: If your business has eligible supplies and you also charge your clients GST\/HST, you can have 1%*30,000=$300 credit for ITC.<\/p>\n

 <\/p>\n

I am using quick method for my HST. I purchased equipment for my business, HST cost is $500. Can I claim it? <\/strong><\/h4>\n

Yes, you can. Capital cost allowance can be claimed on equipment.<\/p>\n

 <\/p>\n

What are my remittance rates?<\/h4>\n

Remittance rates for businesses that purchase goods for resale<\/p>\n

Some businesses usually have one remittance rate. But in some cases, a business may have more than one remittance rate. For example, if a business provides supplies in both participating and non-participating provinces, more than one rate may apply.<\/p>\n

GST\/HST quick method remittance rates for businesses that purchase goods for resale<\/strong>, based on the province where the permanent establishment (PE) of a business is located<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t
<\/th>PE located where
\nGST at 5% applies<\/th>		PE located where
\nHST at 13% applies<\/th>		PE located where
\nHST at 14% applies<\/th>		PE located where
\nHST at 15% applies
\n<\/th>\n<\/tr>\n<\/thead>\n
Supplies
\nwhere GST at
\n5% applies
\n<\/td>		1.8%<\/td>0% (and 2.8% credit)<\/td>0% (and 3.4% credit)<\/td>0% (and 4.0% credit<\/td>\n<\/tr>\n
Supplies
\nwhere HST at
\n13% applies
\n<\/td>		8.8%<\/td>4.4%<\/td>3.9%<\/td>3.3%<\/td>\n<\/tr>\n
Supplies
\nwhere HST at
\n14% applies
\n<\/td>		9.6%<\/td>5.3%<\/td>4.7%<\/td>4.2%<\/td>\n<\/tr>\n
Supplies
\nwhere HST at
\n15% applies
\n<\/td>		10.4%<\/td>6.1%<\/td>5.6%<\/td>5.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

 <\/p>\n

Example: Your company is in Ontario, and you sold $40k in computers to a client in Alberta. If you choose quick method, you should calculate HST as below.<\/p>\n

HST: $40k*0%=0\u00a0\u00a0\u00a0 Credit: $40k*2.8%+300=$1,420<\/p>\n

 <\/p>\n

GST\/HST quick method remittance rates for businesses that provide services<\/strong>, based on the province where the permanent establishment (PE) of a business is located<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t

\n<\/th>
\nPE located where
\nGST at 5% applies<\/th>
\nPE located where
\nHST at 13% applies<\/th>		PE located where
\nHST at 14% applies<\/th>		PE located where
\nHST at 15% applies
\n<\/th>\n<\/tr>\n<\/thead>\n
Supplies
\nwhere GST at
\n5% applies
\n<\/td>		3.6%<\/td>1.8%<\/td>1.6%<\/td>1.4%<\/td>\n<\/tr>\n
Supplies
\nwhere HST at
\n13% applies
\n<\/td>		10.5%<\/td>8.8%<\/td>8.6%<\/td>8.4%<\/td>\n<\/tr>\n
Supplies
\nwhere HST at
\n14% applies
\n<\/td>		11.3%<\/td>9.6%<\/td>9.4%<\/td>9.2%<\/td>\n<\/tr>\n
Supplies
\nwhere HST at
\n15% applies
\n<\/td>		12.0%<\/td>10.4%<\/td>10.2%<\/td>10.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

 <\/p>\n

Example: Your consulting company is in Ontario. you charged your Alberta clients $50k service fee, and your Ontario client $60k consulting fee. You can use the quick method to calculate HST as below:<\/p>\n

Alberta clients: $50k*1.8%=$900<\/p>\n

Ontario client $60k*8.8%=$5,280<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

CRA reference: https:\/\/solidtax.ca\/wp-content\/uploads\/2022\/09\/rc4058-20e-HST-Quick-Method.pdf If I choose the quick method, can I claim all my input tax credit? (ITCs) When you use the quick method, you cannot apply for an ITC for most purchases. This is because the amount of tax you keep approximates the ITC I would otherwise have claimed. However, you are eligible to […]<\/p>\n

Read More…<\/a><\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"ht-kb-category":[11],"ht-kb-tag":[],"class_list":["post-1634","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-hst-for-business"],"yoast_head":"\nQuick Method Examples - Solid Tax Inc<\/title>\n<meta name=\"description\" content=\"If I choose the quick method, can I claim all my input tax credits? (ITCs)When you use the quick method, you cannot apply\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Quick Method Examples\" \/>\n<meta property=\"og:description\" content=\"If I choose the quick method, can I claim all my input tax credits? (ITCs)When you use the quick method, you cannot apply\" \/>\n<meta property=\"og:url\" content=\"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/\" \/>\n<meta property=\"og:site_name\" content=\"Solid Tax Inc\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SolidTax\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-12T18:12:00+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/\",\"url\":\"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/\",\"name\":\"Quick Method Examples - Solid Tax Inc\",\"isPartOf\":{\"@id\":\"https:\/\/solidtax.ca\/#website\"},\"datePublished\":\"2022-12-20T22:24:02+00:00\",\"dateModified\":\"2023-01-12T18:12:00+00:00\",\"description\":\"If I choose the quick method, can I claim all my input tax credits? (ITCs)When you use the quick method, you cannot apply\",\"breadcrumb\":{\"@id\":\"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/solidtax.ca\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Quick Method Examples\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/solidtax.ca\/#website\",\"url\":\"https:\/\/solidtax.ca\/\",\"name\":\"Solid Tax Inc\",\"description\":\"Tax Preparation and Accounting Service\",\"publisher\":{\"@id\":\"https:\/\/solidtax.ca\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/solidtax.ca\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/solidtax.ca\/#organization\",\"name\":\"Solid Tax Inc\",\"url\":\"https:\/\/solidtax.ca\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/solidtax.ca\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/solidtax.ca\/wp-content\/uploads\/2020\/06\/theworkplace-logo-dark.svg\",\"contentUrl\":\"https:\/\/solidtax.ca\/wp-content\/uploads\/2020\/06\/theworkplace-logo-dark.svg\",\"width\":100,\"height\":100,\"caption\":\"Solid Tax Inc\"},\"image\":{\"@id\":\"https:\/\/solidtax.ca\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/SolidTax\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Quick Method Examples - Solid Tax Inc","description":"If I choose the quick method, can I claim all my input tax credits? (ITCs)When you use the quick method, you cannot apply","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/","og_locale":"en_US","og_type":"article","og_title":"Quick Method Examples","og_description":"If I choose the quick method, can I claim all my input tax credits? (ITCs)When you use the quick method, you cannot apply","og_url":"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/","og_site_name":"Solid Tax Inc","article_publisher":"https:\/\/www.facebook.com\/SolidTax","article_modified_time":"2023-01-12T18:12:00+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/","url":"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/","name":"Quick Method Examples - Solid Tax Inc","isPartOf":{"@id":"https:\/\/solidtax.ca\/#website"},"datePublished":"2022-12-20T22:24:02+00:00","dateModified":"2023-01-12T18:12:00+00:00","description":"If I choose the quick method, can I claim all my input tax credits? (ITCs)When you use the quick method, you cannot apply","breadcrumb":{"@id":"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/solidtax.ca\/knowledge-base\/quick-method-examples\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/solidtax.ca\/"},{"@type":"ListItem","position":2,"name":"Quick Method Examples"}]},{"@type":"WebSite","@id":"https:\/\/solidtax.ca\/#website","url":"https:\/\/solidtax.ca\/","name":"Solid Tax Inc","description":"Tax Preparation and Accounting Service","publisher":{"@id":"https:\/\/solidtax.ca\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/solidtax.ca\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/solidtax.ca\/#organization","name":"Solid Tax Inc","url":"https:\/\/solidtax.ca\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/solidtax.ca\/#\/schema\/logo\/image\/","url":"https:\/\/solidtax.ca\/wp-content\/uploads\/2020\/06\/theworkplace-logo-dark.svg","contentUrl":"https:\/\/solidtax.ca\/wp-content\/uploads\/2020\/06\/theworkplace-logo-dark.svg","width":100,"height":100,"caption":"Solid Tax Inc"},"image":{"@id":"https:\/\/solidtax.ca\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/SolidTax"]}]}},"_links":{"self":[{"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/ht-kb\/1634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/ht-kb"}],"about":[{"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/comments?post=1634"}],"version-history":[{"count":6,"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/ht-kb\/1634\/revisions"}],"predecessor-version":[{"id":1746,"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/ht-kb\/1634\/revisions\/1746"}],"wp:attachment":[{"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/media?parent=1634"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/ht-kb-category?post=1634"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/solidtax.ca\/wp-json\/wp\/v2\/ht-kb-tag?post=1634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}