GST/HST Quick Method
The GST/HST quick method is a process of calculating net tax for GST/HST. This method does not require reporting of the actual GST/HST collected from sales or payable on purchases. It can be used for self-employed or incorporated businesses.
✋🏻 Who can use the GST/HST quick method?
You can use the quick method if all of the following apply:
You have been in business continuously for the 365-day period, ending immediately before your current period.
You have not revoked an election of the quick method or the simplified method of claiming ITCs during the 365 day period.
Revenues from you and your associates must not exceed $400,000 for either the first four consecutive fiscal quarters or last four fiscal quarters out of the 5 periods.
You are not one of the following business types exempt from the quick method:
Persons that provide bookkeeping, financial consulting, tax consulting or tax preparation services in the course of the person's commercial activities;
Persons providing legal, accounting or actuarial services;
Listed financial institutions;
Charities;
Public institutions;
Non-profit organizations with at least 40% government funding in the year;
Municipalities or local authorities;
Public colleges, school authorities, universities that operate as for-profit;
Hospital authorities, facility operators or external suppliers.
✋🏻 How to calculate the remittance amount with the quick method?
When using the quick method to calculate the remittance amount, multiply your revenue from your supplies (including GST/HST) for the period by the quick method remittance rate.
For more additional information please refer to the CRA website here.
(*) This article is intended as general information only and is not to be relied upon as constituting legal, financial, or other professional advice. A professional advisor should be consulted regarding your specific situation.
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