Could the GST/HST quick method save my business money?

Arsen Accounting Services · Question 142 · Sources checked October 29, 2026

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The quick method can simplify GST/HST calculations for eligible businesses, but it is not available to everyone and does not always produce the lowest cost. Compare it with the regular method using your actual sales and expenses before making an election.

Confirm eligibility first

CRA applies revenue and other conditions, including a $400,000 tax-inclusive taxable-supply test calculated under its specified rules. Certain businesses are excluded, including accounting, bookkeeping, legal, financial-consulting, and tax-preparation services.

Under the quick method, the remittance rate replaces most input-tax-credit calculations for ordinary operating costs. Certain capital purchases may still qualify for ITCs. The rate and any credits depend on the circumstances; do not confuse the remittance rate with the rate charged to customers.

Official guidance: [1], [2].

Compare both methods

A service business with few taxable expenses may have a different result from a business purchasing substantial inventory or equipment. Build the comparison from a representative year and identify one-time purchases that could distort the result.

Prepare the calculation inputs

• Taxable sales by province and supply type.
• Associated-business information needed for eligibility.
• Operating expenses and GST/HST paid.
• Planned capital purchases and registration history.

Ask about election deadlines, effective dates, and the income-tax treatment of amounts retained under the method. Continue keeping complete expense records even when individual operating ITCs are not claimed. Once the method is selected, apply it consistently and review eligibility as the business grows. A favourable result for another business is not proof that the same election suits yours.