CRA Accounts
GST/HST Quick Method: Who It's For and How It Works
The GST Quick Method lets eligible small businesses remit a set percentage of GST/HST instead of tracking tax on each sale. See who qualifies today.
The GST Quick Method is a CRA-approved way for eligible small businesses to calculate how much GST/HST they remit. Instead of tracking the tax collected on every invoice, you apply a published remittance rate to your GST/HST-included revenue. It can simplify bookkeeping for sole proprietors with steady revenue and few GST/HST-bearing expenses, but it is not the right fit for every business. As of the current tax year, eligibility depends on an annual revenue ceiling and the types of supplies you make, so confirm the current rules on canada.ca before you elect.
What the GST Quick Method actually changes
Under the regular method, you remit the GST/HST you charged minus the input tax credits (ITCs) you can claim on business purchases. Under the Quick Method, you still charge, collect and show GST/HST on your sales exactly the same way. What changes is the calculation: you multiply your GST/HST-included revenue by a CRA-published remittance rate and remit that amount, and you generally do not claim ITCs on most operating expenses. The CRA publishes different rates depending on the GST/HST rate that applies in your province and on your type of business, so confirm the rate that applies to you.
Who the GST/HST Quick Method is for
The Quick Method tends to suit owners who would rather not track tax on every transaction. It is often a reasonable fit when:
- Your sales are mostly taxable and made to customers in Canada.
- Your operating expenses are modest, or the GST/HST you pay on them is small.
- You sell services or other high-margin items rather than goods you buy and resell.
- You want a remittance figure you can calculate from total revenue alone.
It is usually a poor fit if you pay significant GST/HST on inventory, equipment or other purchases, because those ITCs are generally restricted under the Quick Method. Businesses making mostly zero-rated supplies, such as many exporters, also rarely benefit.
Eligibility and the quick method GST threshold
To use the Quick Method you must be registered for GST/HST, which means filing under your Business Number and GST/HST account. See Business Number vs GST/HST number and how to register for GST/HST for the basics. The CRA sets an annual revenue ceiling for the Quick Method, which is separate from the GST/HST registration threshold that decides whether you must register at all. Confirm the current figure on the CRA website, because it can change. Certain businesses are excluded regardless of revenue, including those that sell real property and some financial services. You elect into the method rather than being defaulted into it, and once you elect you are generally expected to stay on it for a minimum period.
Quick Method compared with the regular method
| Point | Quick Method | Regular method |
|---|---|---|
| GST/HST charged on sales | Same | Same |
| Remittance calculation | Published rate applied to GST/HST-included revenue | Tax collected minus ITCs |
| ITCs on day-to-day expenses | Generally not claimed | Claimed where eligible |
| ITCs on capital property and real property | Generally available | Generally available |
| Record-keeping | Simpler remittance math | Full ITC tracking |
| Typical fit | Low-expense service businesses | Businesses with large GST/HST-paid inputs |
How to elect, file and report
- Check that you meet the eligibility conditions and the current revenue ceiling.
- Confirm which published remittance rate applies to your province and business type.
- Complete the CRA's Quick Method election form, checking canada.ca for the current form number and filing instructions.
- Apply the rate each reporting period and report the result on your GST/HST return.
As a sole proprietor you also report your business income on form T2125 with your personal tax return; the Quick Method affects only the GST/HST side of your books, not your income tax. CRA My Business Account is where you file returns, view notices and update your account details, including changes to your filing frequency.
Watch-outs and record-keeping
Common errors include assuming no ITCs are ever available (capital property and real property are generally treated differently), applying a rate from the wrong province, and forgetting that the election exists at all. Keep the records the CRA requires: sales invoices showing the GST/HST charged, purchase receipts, and a note of the rate you applied each period. If your revenue grows past the ceiling, or your expense mix changes, revisit whether the Quick Method still helps. You can generally ask to change methods, but timing rules apply. For help adjusting details on your account, see how to update your CRA business account.
Frequently asked questions
What is the GST Quick Method?
It is a CRA option for eligible small businesses to calculate GST/HST remittances by applying a published rate to GST/HST-included revenue, rather than subtracting input tax credits from the tax collected. You still charge and show GST/HST on your invoices the same way. The rate depends on your province's GST/HST rate and your business type, so confirm the current rate on the CRA website.
What is the quick method GST threshold?
The CRA sets an annual revenue ceiling for Quick Method eligibility, and it is separate from the small-supplier threshold that determines whether you must register. Because these amounts can change, confirm the current figure on canada.ca before electing. If your revenue exceeds the ceiling, you generally have to use the regular method instead.
Can I switch between the Quick Method and the regular method?
Generally yes, but not freely at any time. You elect into the Quick Method and are typically expected to remain on it for a minimum period before you can revoke the election. Switching back may also depend on the timing of your reporting periods. Confirm the current election and revocation rules with the CRA, or through CRA My Business Account, before filing.
Do I still get input tax credits under the Quick Method?
ITCs are generally restricted. You usually cannot claim them on most operating expenses, which is why the method suits businesses with low GST/HST-bearing costs. ITCs on capital property and real property are generally treated differently and may still be available. Confirm how your specific purchases are treated on the CRA website before you rely on the Quick Method.