The Quick Method is an alternative way to calculate GST/HST owing, and for the right business, it can mean keeping more of what's collected — but it isn't a fit for every business, and once elected, it generally needs to be used for at least a year before it can be revoked.

How the Quick Method Works, Conceptually

Under the standard method, a business remits the GST/HST it collected minus the GST/HST it paid on expenses (input tax credits), tracked precisely. Under the Quick Method, a business instead remits a set percentage of its GST/HST-included revenue, without tracking individual input tax credits on most purchases. The remittance rate depends on the type of business and the province, and it's reviewed periodically, so confirming the current rate for a specific situation matters more than working from a remembered figure.

Why the Quick Method Can Result in Keeping More Money

Because the Quick Method's prescribed remittance rates are generally lower than the full GST/HST rate charged to customers, a business can sometimes end up remitting less than it collected — but this isn't automatic, and it depends heavily on the specific business's revenue and expense pattern. It tends to be more attractive for businesses with relatively low GST/HST-eligible expenses, since the input tax credits given up under the Quick Method are smaller to begin with, making the simplified remittance rate the better deal overall.

Who the Quick Method Tends to Suit

Service-based businesses with low overhead and few large purchases may find the Quick Method attractive, since they generally have fewer large input tax credits to give up. A business making large equipment purchases or with significant GST/HST-eligible expenses often does better under the standard method instead, since the Quick Method gives up the ability to claim those input tax credits in detail. The Quick Method being simpler isn't the same as it being better — the real question is whether the savings from the flat rate outweigh the input tax credits that would have been claimed under the standard method, and that answer genuinely varies by business.

Eligibility and Revenue Limits

Not every business qualifies for the Quick Method. Worldwide taxable supplies — including GST/HST and those of any associated businesses — generally need to be no more than $400,000 for at least one of the applicable four-consecutive-fiscal-quarter periods within the last five fiscal quarters. Certain professions are excluded regardless of revenue, including accountants, bookkeepers, lawyers, and financial consultants. Confirming current eligibility rules before electing into the Quick Method is a necessary first step, not an afterthought.

Electing In and Out of the Quick Method

Once elected, the Quick Method generally needs to be used for at least a full year before it can be revoked, and after revoking it, there's typically another minimum wait before electing back in. It isn't something to toggle between quarter to quarter based on which happens to look better after the fact. The decision is worth running the actual numbers on for a specific business's typical revenue and expense pattern before committing — not because it's complicated, but because the right answer for one business can be the wrong one for another with a different cost structure.

Whether a business needs to be registered for GST/HST at all comes before this decision — RSB's GST/HST quiz is the place to start if that's still unclear.

FAQ

Can any GST/HST registered business use the Quick Method? No — eligibility depends on revenue thresholds and business type, and some professions and business types are specifically excluded regardless of revenue.

Does the Quick Method mean no input tax credits can be claimed at all? Not entirely — certain large purchases, like capital property, may still allow a separate input tax credit claim even under the Quick Method, though most day-to-day expenses don't get tracked individually.

How is the right Quick Method rate for a specific business determined? The rate depends on the type of supply the business makes and the province it operates in, set out in the CRA's current Quick Method guidance — confirming the applicable rate for the specific business type is essential before electing in.

Is the Quick Method simpler from a bookkeeping perspective, even setting aside the dollar impact? Yes — not tracking individual input tax credits on most purchases does reduce some of the ongoing bookkeeping work, which is a real benefit independent of whether it results in remitting more or less overall.

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