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Updated June 2026

Quick Method of Accounting for GST/HST Explained

Remit a reduced percentage of your GST/HST-included sales instead of tracking Input Tax Credits on every purchase. Simpler bookkeeping — but not always cheaper.

Last updated: June 2026

Eligibility
Under CA$400,000
annual taxable supplies, with exclusions
Remittance rates
Roughly 1% – 8.8%
depending on province and business type
Trade-off
No separate ITC claims
on most routine purchases

How the Quick Method works

Instead of calculating GST/HST owed as (tax collected) minus (Input Tax Credits on purchases), you apply a reduced remittance rate to your GST/HST-included revenue and remit that to the CRA. You still charge customers the full GST/HST rate on your invoices as normal — the Quick Method rate only affects what you actually remit, not what you charge.

You generally cannot separately claim Input Tax Credits on most routine purchases while using the Quick Method, since the reduced rate is designed to already account for typical ITCs — though you can still claim ITCs on certain capital property purchases.

Who can use it

You’re generally eligible if your worldwide taxable supplies (including those of associated businesses) are CA$400,000 or less annually, and you’re not in certain excluded categories (some professional services and specific business types are excluded). You must elect to use the method, and there’s a one percentage point credit on the first CA$30,000 of eligible supplies each year for most businesses.

When it saves money

The Quick Method tends to work out favourably for businesses with genuinely low Input Tax Credits — service businesses with few significant purchases, minimal stock, or low equipment costs — and less favourably for businesses with substantial reclaimable ITCs on stock, equipment, or subcontractor costs, since you give up separately claiming those.

Frequently asked questions

Do I charge customers a different tax rate on the Quick Method?

No. You still charge the normal GST/HST rate on your invoices to customers. The Quick Method remittance rate only affects what you remit to the CRA.

Can I switch off the Quick Method later?

Yes, you can elect to stop using it, generally effective from the start of a reporting period, subject to minimum time requirements on the election.

Can I claim any Input Tax Credits while on the Quick Method?

Generally only on specific items like capital property purchases over certain thresholds — routine operating purchases are not separately claimable, since the reduced rate already accounts for typical ITCs.

Which remittance rate applies to my business?

It depends on your province, whether you’re a service or goods-based business, and other CRA-defined categories — check the current published rate table before electing.

Is the Quick Method available to all business sizes?

No, it’s specifically for smaller businesses under the CA$400,000 threshold with certain exclusions — larger businesses must use the regular method.

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General guidance only. Quick Method rates and eligibility can change periodically. Always verify with the CRA or consult a qualified accountant before making decisions.

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