The Quick Method is a simplified GST/HST accounting option that lets eligible small businesses remit a flat percentage of tax-included sales instead of tracking every input tax credit.
The Quick Method simplifies GST/HST for eligible small businesses (generally under $400,000 in annual taxable supplies). Instead of tracking input tax credits on every purchase, you remit a flat percentage of your GST/HST-included sales, keeping the difference. You still charge customers the normal tax rate.
It benefits service businesses with few taxable purchases, where the flat remittance rate is less than the tax collected. It is a poor choice for businesses with significant input tax credits, since you give most of them up. The election generally binds you for at least a year, so the two approaches should be compared first.
A consultant using the Quick Method collects HST on her invoices but remits a lower flat percentage of her tax-included sales to the CRA, keeping the difference because she has few taxable expenses to claim credits on.
Our certified accounting firm handles this for businesses and individuals across Canada, at fixed fees with no surprises.
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