The GST/HST Quick Method changes how an eligible business calculates its remittance. It does not change the tax rate charged to customers, and it is not automatically the cheaper option.
Establish eligibility first
The revenue test generally uses a $400,000 ceiling, including GST/HST and associates' relevant worldwide taxable supplies, measured over the specified fiscal-quarter periods. Other conditions apply. Certain businesses, including bookkeeping, tax preparation, accounting and legal practices, are excluded. New businesses have a specific eligibility rule. CRA's Quick Method guide.
Once eligible, compare the regular calculation with the correct Quick Method calculation for your business type and supplies. Most operating-expense ITCs are unavailable under the Quick Method; eligible capital purchases can be treated differently. Not every sale belongs in the same calculation.
Build a comparison from a representative year
Start with sales by tax treatment and province, then list taxes on operating expenses and planned capital purchases. Include any applicable credit, excluded transactions and income-tax treatment of the amount retained.
Suppose an eligible photographer has one permanent establishment in Ontario and $100,000 of annual service sales, all subject to Ontario's 13% HST and eligible for the Quick Method calculation. Assume the election applies from the beginning of the fiscal year, with no capital purchases, excluded transactions or other adjustments.
The business collects $13,000 HST, giving $113,000 in tax-included sales. Its Quick Method remittance uses 8.8% of $113,000, less the 1% credit on the first $30,000 of eligible tax-included sales:
| Method | Calculation | Remittance |
|---|---|---|
| Regular, with $1,300 eligible operating ITCs | $13,000 - $1,300 | $11,700 |
| Quick Method | $113,000 × 8.8% - $300 | $9,644 |
Now change only the operating purchases: if they support $3,900 of regular-method ITCs, the regular remittance falls to $9,100, below the same $9,644 Quick Method result. Those operating ITCs are not deducted again under the Quick Method. CRA's service rates and credit rules determine this example.
These are remittance comparisons, before the income-tax effects of the amount retained and expense treatment. A major equipment purchase or different sales mix needs its own calculation. Use your expected purchases rather than choosing a method from the sales total alone.
Record the election deadline and proposed effective date before changing the books. An annual filer generally elects by the first day of the second fiscal quarter, with special rules for a new registrant's short first period. Monthly and quarterly filers have different timing.
Keep the comparison, election confirmation and ongoing eligibility review together. The method simplifies one calculation; it does not remove the need for invoices, purchase records or complete income-tax bookkeeping.
Checked October 22, 2026. Begin with regular-method ITCs so the comparison uses the same purchases.
