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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