What changes under the quick method
With the regular method, you add up the tax you charged, subtract the input tax credits on your purchases, and remit the difference. Under the quick method you keep charging tax at the full rate, but you apply a lower remittance rate to your tax-included sales for the period. You generally stop claiming credits on everyday purchases such as supplies, software and professional fees.
The CRA sets the remittance rates. They depend on the province of your permanent establishment, the province where you make the supply, and whether you buy goods for resale or mainly provide services. Check the current rate chart rather than relying on a figure remembered from an earlier year.
Who can elect, and who cannot
In general, you need to have been in business for the full 365 days before the period, not have revoked a quick method or simplified method election in that time, and have worldwide taxable sales, including those of associates and including zero-rated sales, of $400,000 or less (tax included) on the CRA’s test. New registrants have a separate expectation-based test.
Some businesses are excluded altogether. They include people who provide bookkeeping, financial or tax consulting, tax return preparation, legal, accounting or actuarial services, as well as listed financial institutions and certain charities and public bodies. Certain sales, such as zero-rated sales and sales of capital assets or real property, are also handled outside the quick method calculation.
An illustrative example
Suppose an Ontario photographer, who counts as a services business, makes $10,000 of sales plus $1,300 of HST in a quarter. Illustratively, if the 8.8% remittance rate applies, the tax-included sales of $11,300 produce $994.40. If the 1% credit on the first $30,000 of annual sales applies, it reduces that by $113.00, so the remittance is $881.40. The business keeps about $418.60 of the $1,300 collected.
Whether that is better than the regular method depends on how much tax the business actually pays on purchases. A business with large deductible costs can end up worse off. These numbers are illustrative only.
Elections, records and what to ask
You elect through My Business Account or on Form GST74, and the start date must be the first day of a reporting period. You can revoke only after the election has been in effect for at least one year, and then you generally wait a year before electing again. Once elected, the election generally stays in effect until your annual sales pass the limit or your type of business becomes excluded, so keep an eye on growth.
You still keep purchase and sales records. You can still claim credits on real property and capital assets such as computers and vehicles. Ask your accountant to model both methods using last year’s figures before you elect.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- RC4058 Quick Method of Accounting for GST/HSTCanada Revenue Agency
- GST74 Election and Revocation of an Election to Use the Quick Method of AccountingCanada Revenue Agency
- General information for GST/HST registrantsCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.