HST Quick Method Calculator

GST/HST Quick Method for Canadian Small Businesses

The Quick Method is a simplified GST/HST accounting option for eligible small businesses. Instead of tracking Input Tax Credits (ITCs) on every business purchase, you remit a flat percentage of your GST/HST-inclusive revenue. The remittance rate is lower than the actual GST/HST rate, and the difference becomes additional profit. This works particularly well for service-based businesses with low input costs, such as consultants, freelancers, and professional service providers, because they collect full GST/HST from clients but have relatively few purchases to claim ITCs on.

Eligibility requires that your taxable sales (including GST/HST) are $400,000 or less annually. Certain professions are excluded, including accountants, lawyers, and financial advisors. You must file an election (Form GST74) before the first reporting period in which you want to use the Quick Method. A 1% credit applies on the first $30,000 of eligible revenue each fiscal year, providing a small additional benefit. Once elected, you cannot claim ITCs on operating expenses, though you can still claim ITCs on capital asset purchases over $30,000.

Quick Method Remittance Rates (Select Provinces)

The Quick Method is not always advantageous. Businesses with significant input costs—such as retailers, manufacturers, or restaurants that purchase substantial inventory—may save more with the standard method because their ITCs exceed the Quick Method savings. Run both calculations before electing. You can revoke the election at the start of any fiscal year by notifying CRA, so testing the Quick Method for one year carries minimal risk.