Under the regular method, you remit the GST/HST you collected minus input tax credits (ITCs) for the GST/HST you paid. The Quick Method is a simpler option for small businesses. You still charge the normal rate, but you remit a fixed percentage of your GST/HST-included sales and generally don't claim ITCs on regular operating expenses. ITCs on capital purchases (such as equipment) can still be claimed.
From Guide RC4058, for businesses that provide services (rather than buying goods to resell), by where your permanent establishment (PE) is and the rate on the supply:
| Supply taxed at | PE in a 5% GST province | PE in a 13% HST province | PE in a 14% HST province | PE in a 15% HST province |
|---|---|---|---|---|
| 5% GST | 3.6% | 1.8% | 1.6% | 1.4% |
| 13% HST | 10.5% | 8.8% | 8.6% | 8.4% |
| 14% HST | 11.3% | 9.6% | 9.4% | 9.2% |
| 15% HST | 12.0% | 10.4% | 10.2% | 10.0% |
Businesses that buy goods for resale have different (lower) rates. Always confirm your rates in RC4058.
Each fiscal year you get a credit of 1% on the first $30,000 of eligible GST/HST-included supplies, which is up to $300.
An Ontario freelance writer bills $40,000 in a year, all to Ontario clients, plus 13% HST ($5,200), for $45,200 total. Business expenses carried $600 of HST.
| Regular method | Quick Method | |
|---|---|---|
| Calculation | $5,200 collected − $600 ITCs | $45,200 × 8.8% = $3,977.60, minus the 1% credit on $30,000 ($300) |
| Net tax remitted | $4,600.00 | $3,677.60 |
For service businesses with few taxable expenses, the Quick Method often means remitting less and keeping simpler records. For businesses with large taxable expenses, the regular method may come out ahead. Run both before you elect, and ask an accountant if you're unsure.
Note: our tracker models the regular method (GST/HST collected minus estimated ITCs). Its income log still gives you the GST/HST-included sales total you need for the Quick Method.
Free tool: try the GST/HST calculator by province to add or remove GST/HST from any amount.
Want this in a spreadsheet? The Canada Self-Employed Income, Expense & GST/HST Tracker ($19 CAD, Excel/Google Sheets) logs income, expenses by T2125 line, and GST/HST collected and paid, with monthly totals.
Most small businesses with a permanent establishment in Canada whose annual worldwide taxable supplies (including GST/HST and zero-rated supplies, plus associates) are $400,000 or less. Some businesses are excluded, including those providing legal, accounting, actuarial, bookkeeping, financial consulting, tax consulting or tax return preparation services. Check Guide RC4058.
No. You still charge your clients the full 5% GST or the applicable HST. The Quick Method only changes how much you remit.
File Form GST74, Election and Revocation of an Election to use the Quick Method of Accounting, by the deadline set out in the CRA's guidance.