GST/HST Quick Method in Canada: Could Your Business Save Thousands?
One of the most overlooked tax-saving tools for Canadian small businesses is hiding in plain sight on your GST/HST return. The GST/HST Quick Method is a simplified way to calculate what you owe the CRA — and for many service businesses in Ottawa and across Ontario, it legally puts hundreds or even thousands of dollars back in your pocket each year. Yet most owners only hear about it when their accountant mentions it at year-end, often too late to elect for that period. This 2026 guide explains how the Quick Method works, who qualifies, how much you could save, and the mistakes that cost businesses money.
Table of Contents
Key Takeaways
- The GST/HST Quick Method lets eligible businesses remit a flat percentage of their GST/HST-included sales instead of tracking input tax credits on every expense.
- You qualify if your annual taxable supplies, including GST/HST, are $400,000 or less over the previous four consecutive quarters.
- You still charge customers the full 13% HST in Ontario but remit a lower rate, keeping the difference as savings.
- The Quick Method works best for service businesses with low taxable expenses; it rarely suits businesses with large purchases.
- You must file an election (Form GST74) before the start of the reporting period you want it to apply to.
What the GST/HST Quick Method is
The GST/HST Quick Method is an alternative accounting method offered by the Canada Revenue Agency that simplifies how you calculate the tax you remit. Instead of subtracting the GST/HST you paid on purchases (input tax credits) from the GST/HST you collected, you simply remit a flat, lower percentage of your total GST/HST-included revenue and keep the rest.
The savings come from the gap between the tax you collect and the smaller amount you remit. Because the flat remittance rate is set below the rate you charge customers, a business with modest expenses keeps the difference as profit. It also dramatically reduces bookkeeping work, since you no longer track input tax credits on most day-to-day expenses. For businesses already filing GST/HST, our guide on understanding HST/GST filing covers the standard method this replaces.
Who can use the Quick Method
You can use the Quick Method if your total annual taxable supplies, including GST/HST, are $400,000 or less in any four consecutive fiscal quarters over the past year. You must also have been registered for GST/HST and not be in an excluded profession.
Certain businesses cannot use the Quick Method, including accountants and bookkeepers, financial consultants, lawyers, and listed financial institutions. Most other service businesses — consultants, contractors, tradespeople, marketing agencies, and similar — are eligible and often benefit the most. If you are unsure whether you qualify or whether incorporating changes your position, our corporate tax services and guidance on the difference between a sole proprietorship and incorporation can help you decide.
How the Quick Method works (with an example)
Under the Quick Method you charge customers the normal GST/HST, but you remit only a set percentage of those tax-included sales to the CRA. A simple Ontario example shows the savings clearly.
Imagine a consultant bills $100,000 plus 13% HST, collecting $13,000 in tax for total receipts of $113,000. Under the regular method, they would remit the $13,000 collected minus their input tax credits. Under the Quick Method for a service business in Ontario, they instead remit roughly 8.8% of the $113,000 — about $9,944 — and keep the difference, less the small amount of input tax credits they give up. For a business with low expenses, that gap can be a few thousand dollars a year. There is also a 1% credit available on the first $30,000 of eligible supplies, increasing the benefit further. Keeping clean books makes this calculation effortless, which is exactly what our bookkeeping services are built for.
Quick Method remittance rates
Remittance rates depend on your province and whether you mainly provide services or resell goods. The figures below are typical Ontario rates; always confirm the current rate for your situation, since the CRA sets them.
| Business type (Ontario) | You charge | You remit (approx.) |
|---|---|---|
| Service providers | 13% HST | 8.8% of tax-included sales |
| Goods resellers | 13% HST | 4.4% of tax-included sales |
| First $30,000 of supplies | — | Extra 1% credit applies |
Because rates vary by province and business activity, the exact figure for your business should be confirmed against the CRA’s official guide. The Government of Canada’s publication RC4058, Quick Method of Accounting for GST/HST, lists all current remittance rates and eligibility rules.
When the Quick Method saves money — and when it doesn’t
The Quick Method saves the most for service businesses with low taxable expenses — consultants, professionals, and tradespeople who sell their time more than physical goods. With few input tax credits to give up, nearly the entire gap between what they collect and what they remit becomes savings, plus the bookkeeping is far simpler.
It is usually a poor fit, however, for businesses with large taxable purchases — retailers, manufacturers, or anyone buying significant inventory or equipment — because they would forfeit valuable input tax credits. One important exception: even on the Quick Method, you can still claim input tax credits on capital purchases such as equipment and vehicles. The right choice depends on your numbers, so it is worth running both methods before deciding.
How to elect for the Quick Method
To use the Quick Method, you must file an election with the CRA using Form GST74, and timing is critical. The election generally has to be filed before the first day of the reporting period in which you want it to take effect — you cannot apply it retroactively to a period that has already started. This is exactly why so many businesses miss out: they learn about it after the window has closed.
Once elected, the Quick Method stays in effect until you revoke it, and it must remain in place for at least one year. Reviewing your eligibility and filing the election early — ideally as part of your annual tax planning — is the difference between capturing the savings and leaving them on the table. For a full picture of your filing obligations, see our 2026 guide to GST/HST registration.
Why BBA Tax is the right choice for your GST/HST strategy
BBA Tax is an Ottawa-based accounting and tax firm that works with self-employed professionals, contractors, and incorporated small businesses across the National Capital Region. The Quick Method is exactly the kind of strategy we look for on every client file — a legal, low-effort way to keep more of what you earn that too many businesses never hear about until it is too late.
Because we handle your bookkeeping, GST/HST filing, and tax planning together, we can model both the regular and Quick Methods on your real numbers, file the election on time, and make sure you never forfeit credits you should keep. We also watch for the exclusions and timing traps that trip up DIY filers. Local, CPA-led, and proactive, we treat your sales tax not as a chore but as one more place to find you savings.
Conclusion
The GST/HST Quick Method is one of the simplest, most overlooked ways for a Canadian service business to save money. If your taxable supplies are $400,000 or less and you have modest expenses, remitting a flat rate instead of tracking every input tax credit can mean thousands of dollars a year and far less paperwork. The catch is timing — the election must be filed before the period begins. Check your eligibility now, run the numbers both ways, and make the GST/HST Quick Method part of your tax plan before the next window closes.
Frequently Asked Questions
What is the GST/HST Quick Method?
It is a simplified CRA accounting method where eligible businesses remit a flat percentage of their GST/HST-included sales instead of tracking input tax credits on expenses. You still charge customers the full tax but remit less, keeping the difference as savings.
Who is eligible for the Quick Method?
Businesses with annual taxable supplies of $400,000 or less (including GST/HST) over four consecutive quarters generally qualify. Accountants, bookkeepers, financial consultants, lawyers, and listed financial institutions are excluded, but most other service businesses can elect.
How much can the Quick Method save?
Savings depend on your revenue and expenses, but a low-expense Ontario service business can save a few thousand dollars a year. The benefit comes from the gap between the 13% HST you charge and the lower flat rate (about 8.8%) you remit, plus a 1% credit on the first $30,000.
Can I still claim input tax credits on the Quick Method?
You give up input tax credits on most operating expenses, but you can still claim them on capital purchases such as equipment and vehicles. This exception is why businesses planning a large equipment purchase should review both methods before electing.
How do I sign up for the Quick Method?
File Form GST74 with the CRA before the first day of the reporting period you want it to apply to — it cannot be applied retroactively. Once elected, it stays in effect for at least a year. Reviewing eligibility early, with an accountant, ensures you do not miss the deadline.
