What is the GST/HST quick method, and should I use it?
An election that lets smaller businesses remit a reduced flat rate on sales instead of tracking input tax credits — often a real saving for service businesses with low expenses.
Normally you remit the HST you collected minus the HST you paid. The quick method replaces that with one simplified move: remit a reduced flat percentage of your HST-included sales and keep the difference, in exchange for giving up most input tax credits.
Who tends to win
Service businesses with low taxable expenses — consultants, agencies, professionals — because they were not claiming many input tax credits anyway. Businesses with heavy taxable costs (materials, inventory) usually do better on the regular method.
The mechanics
It is an election with CRA, generally available while taxable sales stay under the annual threshold (around $400,000 — confirm current figures). Remittance rates vary by province and business type, and there is a small bonus credit on the first slice of sales each year. Capital purchases still get their input tax credits.
The catch
You still charge customers full HST — the quick method only changes what you remit. Choosing it is a calculation, not a default; the wrong pick quietly costs money every quarter.
This is general information, not tax advice for your situation. Book a call and a Canadian accountant will give you the answer for your business.
Common questions
How do I know if the quick method saves me money?
Compare a year of remittances both ways: flat rate on sales versus collected-minus-credits. Low-expense service businesses usually win; anyone buying significant taxable inputs usually loses. Your accountant can run it in minutes from real numbers.
Can I switch back if it stops making sense?
Yes, elections can be changed, with timing rules on when a revocation takes effect. It is a review-annually decision, not a tattoo.