--- title: "GST/HST Quick Method: Can It Save You Money? | EverStone" url: https://www.everstonecpa.com/blog/gst-hst-quick-method-canada description: "Is the GST/HST Quick Method right for your business? Eligibility, remittance rates, the 1% credit, and a worked example inside. Send an enquiry." type: guide updated: 2026-10-12 summary: "The Quick Method lets an eligible business remit a flat percentage of GST/HST-included sales instead of tracking every input tax credit . You qualify if your annual taxable supplies are $400,000 or less (GST/HST included), and it’s off-limits to certain professional and financial businesses." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) GST/HST Quick Method: Can It Save You Money? Tax # GST/HST Quick Method: *can it save you money?* By EverStone CPA · Updated August 2026 · 8 min read Quick answer **Quick answer:** The Quick Method lets an eligible business remit a flat percentage of GST/HST-included sales instead of tracking every [input tax credit](https://www.everstonecpa.com/glossary#itc). You qualify if your annual taxable supplies are $400,000 or less (GST/HST included), and it’s off-limits to certain professional and financial businesses. The remittance rate depends on your province and whether you sell goods for resale, and you get a 1% credit on your first $30,000 of eligible supplies each year. It tends to favour low-expense service businesses; it can cost businesses with large deductible expenses more than the regular method. **On this page**[What the Quick Method actually does](#s-what-the-quick-method-actually-does)[Are you eligible?](#s-are-you-eligible)[How the remittance rate works](#s-how-the-remittance-rate-works)[The 1% credit on your first $30,000](#s-the-1-credit-on-your-first-30-000)[Worked example: a solo consulting business](#s-worked-example-a-solo-consulting-busines)[Who benefits — and who shouldn’t elect](#s-who-benefits-and-who-shouldn-t-elect)[How and when to elect](#s-how-and-when-to-elect)[The bottom line](#s-the-bottom-line)[Frequently asked questions](#s-frequently-asked-questions)[Not sure if the Quick Method pays off for you?](#s-not-sure-if-the-quick-method-pays-off-fo) A flat remittance rate instead of tracking every credit. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) ## Key takeaways - Eligibility: $400,000 or less in annual taxable supplies (GST/HST included), including [associated corporations](https://www.everstonecpa.com/glossary#associated). - Not available to accountants, bookkeepers, tax preparers, lawyers, financial consultants and similar businesses. - Remittance rate depends on your province and whether goods for resale make up 40%+ of your sales. - 1% credit on your first $30,000 of eligible supplies, every fiscal year. - Elect using Form GST74. Most small businesses that register for GST/HST use the “regular method”: collect tax on sales, track the tax paid on every expense, and remit the difference. The Quick Method is CRA’s simplified alternative — and for the right kind of business, it can mean less bookkeeping and a genuine cash saving. ## What the Quick Method actually does Instead of calculating input tax credits (ITCs) on every receipt, you apply a fixed **remittance rate** to your GST/HST-included revenue and send that amount to the CRA. The rate is deliberately set lower than the tax rate you charge customers, so the gap is meant to roughly replace the ITCs you’d otherwise claim. You still charge your customers the normal GST or HST rate — the Quick Method only changes how you calculate what you remit. **Wondering if the Quick Method saves you money?** We run both methods on your figures, elect the better one and file the returns, as part of bookkeeping from $325 a month. [Get a quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) ## Are you eligible? You can elect the Quick Method if, over the four fiscal quarters before you elect, your **annual worldwide taxable supplies (GST/HST included) are $400,000 or less** — combined with any associated corporations. You also need to be a GST/HST registrant and file on a regular basis. A specific list of businesses is excluded regardless of revenue, including: - Accountants and bookkeepers - Tax return preparation and tax consulting services - Audit services - Financial consultants - Lawyers, law offices and notaries public - Actuaries - Listed financial institutions **Note:** if any part of your revenue comes from one of these excluded activities, the whole business is generally ineligible — it isn’t prorated. If you’re unsure whether your business qualifies, confirm with us before filing an election. ## How the remittance rate works The rate you use depends on two things: **your province** and **whether goods purchased for resale make up 40% or more of your annual taxable supplies**. Service businesses with few resale goods pay a higher rate than businesses that resell goods, because resellers already pay GST/HST on their inventory. As examples, based on the CRA’s current published rates (Guide RC4058): Quick Method remittance rates by province and business type, from CRA Guide RC4058 | Province / business type | Quick Method rate* | | British Columbia — service business | 3.6% of GST-included sales | | British Columbia — goods for resale (40%+) | 1.8% of GST-included sales | | Ontario (HST) — service business | 8.8% of HST-included sales | | Ontario (HST) — goods for resale (40%+) | 4.4% of HST-included sales | *Remittance rates shown are the most recently published CRA Quick Method rates at the time of writing. Rates vary by scenario and can change — confirm your exact rate in CRA Guide RC4058 or with us before electing.* *Rates shown are for sales to customers in the same province as your business; rates differ if you ship to customers in other provinces. Confirm your exact rate against CRA Guide RC4058 or with us before electing, since rates vary by scenario. Not sure how this applies to you? Every corporation’s situation is different. Send an enquiry to a CPA and get a straight answer, plus a fixed quote before any work starts. [Send an Enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) [See fixed fees](https://www.everstonecpa.com/pricing) ## The 1% credit on your first $30,000 On top of the lower rate, Quick Method registrants get a **1% credit on the first $30,000** of eligible supplies (GST/HST included) in each fiscal year. If you file annually, this applies to your first $30,000 of eligible revenue for the year; if you file monthly or quarterly, it applies to your early reporting periods until you reach the $30,000 mark. There’s no carry-forward if you don’t reach $30,000 in a given year. ## Worked example: a solo consulting business Consider an incorporated marketing consultant in BC with $120,000 in annual sales, no goods for resale, and modest expenses (say $10,000, mostly services carrying GST). **Regular method:** GST collected at 5% = $6,000. ITCs on $10,000 of GST-bearing expenses at 5% = roughly $500. Net remittance **$5,500**. **Quick Method:** GST-included sales = $126,000. Remittance at the BC service rate of 3.6% = $4,536. Less the 1% credit on the first $30,000 ($300) = net remittance **$4,236**. In this example the Quick Method saves roughly **$1,264** for the year — plus the time saved not tracking ITCs on every small expense. The savings shrink or disappear for a business with heavier deductible expenses, since the regular method would let you recover more tax on those purchases. ## Who benefits — and who shouldn’t elect The Quick Method tends to favour **low-overhead service businesses**: consultants, agencies, and contractors whose main cost is their own labour rather than materials or subcontractors. It’s less attractive for businesses with large equipment purchases, high subcontractor costs, or significant goods for resale, where the regular method’s full ITC recovery is usually worth more. Run both numbers before you elect — we do this comparison as part of onboarding new GST/HST clients. ## How and when to elect You elect (or revoke) using **Form GST74**, filed through CRA [My Business Account](https://www.everstonecpa.com/glossary#mba) or by mail. Annual filers generally must elect by the start of their second fiscal quarter; monthly or quarterly filers must elect by the due date of the return for the period in which they want the Quick Method to start. Once elected, you generally must stay on the method for at least a year before revoking. ## The bottom line The Quick Method isn’t automatically better or worse than the regular method — it’s a trade-off that depends on your expense structure and province. If you’re under the $400,000 threshold, not on the excluded list, and your expenses are mostly labour, it’s worth running the comparison. We can model both methods against your actual numbers and handle the GST/HST filing either way. Filing rhythm is a separate lever from the method: [how to change your GST/HST filing frequency](https://www.everstonecpa.com/blog/change-gst-hst-filing-frequency) covers when each period is available. Sources - [CRA Guide RC4058 — Quick Method of Accounting for GST/HST](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4058.html) - [CRA Form GST74 — Election for the Quick Method](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/gst74.html) - [Canada Revenue Agency — GST/HST](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html) - [Canada Revenue Agency — GST/HST for businesses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html) About this article **EverStone CPA** Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, a CPA firm working with small and midsized businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) This article is general information, not tax advice for your specific situation. GST/HST rules and rates can change — confirm current figures with the CRA or with us before making an election. Working through this in your own business? We advise owners on it remotely across BC, as a [Vancouver small business accountant](https://www.everstonecpa.com/accountant-vancouver). Working through this locally? We advise owners on it as a [Langley small business accountant](https://www.everstonecpa.com/accountant-langley). The method changes what you remit, not when. See [the filing calendar](https://www.everstonecpa.com/gst-filing-deadlines). To compare the two methods with your own revenue and expenses, use the [Quick Method calculator](https://www.everstonecpa.com/quick-method-vs-regular-calculator). ### Related articles Online GST/HST filing → [calculate GST/HST either way](https://www.everstonecpa.com/gst-hst-calculator) [GST/HST registration guide →](https://www.everstonecpa.com/blog/gst-hst-registration-guide-small-business) [Claiming ITCs the normal way →](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide)[Send a CPA a single question →](https://www.everstonecpa.com/quick-question)[Late GST Filing Penalties in Canada →](https://www.everstonecpa.com/blog/late-gst-filing-penalties-canada)[Truck driver meal claims: the simplified method, the 80% rate and the logbook →](https://www.everstonecpa.com/blog/trucking-per-diem-meal-claims-canada) FAQ ## Frequently asked questions about GST/HST Quick Method: Can It Save You Money? **What is the GST/HST Quick Method?** The Quick Method is a simplified way to calculate your GST/HST remittance. Instead of tracking input tax credits on every purchase, you remit a flat percentage of your GST/HST-included sales. The percentage is set below the tax rate you actually charge, so you keep the difference instead of claiming most input tax credits separately. **Who is eligible for the Quick Method?** You can elect the Quick Method if your annual worldwide taxable supplies, including those of any associated corporations, are $400,000 or less (GST/HST included) over the preceding four consecutive fiscal quarters. You must also not be on the CRA’s excluded list of businesses. **Which businesses can’t use the Quick Method?** The CRA excludes certain professional and financial businesses, including accountants and bookkeepers, tax return preparers and consultants, audit services, financial consultants, lawyers and notaries, actuaries, and listed financial institutions, among others. **Does the Quick Method mean I lose all my input tax credits?** Mostly, yes, on day-to-day operating expenses — that trade-off is built into the lower remittance rate. You can still claim an input tax credit on certain capital purchases, such as equipment and real property, above a set value. **How do I elect to use the Quick Method?** You file Form GST74, Election and Revocation of an Election to Use the Quick Method of Accounting, either online through CRA My Business Account or by mail. Annual filers generally must elect by the start of their second fiscal quarter; monthly and quarterly filers must elect by the due date of the return for the period in which they start using it. **Do I still charge customers the normal GST/HST rate on the Quick Method?** Yes. The Quick Method changes how you calculate what you remit, not what you charge. You continue to invoice customers at the normal GST or HST rate that applies to the sale. The flat remittance rate is deliberately set lower than the rate you collect, and that gap is what stands in for the input tax credits you are no longer tracking. **Can I switch back to the regular method later?** Yes, by revoking the election on the same form used to make it, though you generally have to stay on the Quick Method for at least a year first. Because which method wins depends on your expense structure in a given year, it is worth re-running the comparison whenever costs change materially, such as before a year with a large equipment purchase. ## Not sure if the Quick Method pays off for you? Send us your annual sales and taxable purchases. A CPA replies by email within one business day with which method pays and a fixed fee. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) [← Place of supply: which province’s rate do you charge?](https://www.everstonecpa.com/blog/gst-hst-place-of-supply-rules-canada) [GST/HST registration: when your business must register →](https://www.everstonecpa.com/blog/gst-hst-registration-guide-small-business) More on this subject: [our GST/HST hub](https://www.everstonecpa.com/gst-hst-hub). ## Have a question about this? Ask it free through [the quick-question form](https://www.everstonecpa.com/quick-question) and a CPA replies by email within one business day. For something that needs a proper look, a one-off **Advice Call** is a paid 45-minute session with a Chartered Professional Accountant: $225 plus GST, booked by email or phone with a secure payment link. It is credited against your first invoice if you become a client within 60 days. Looking for an accountant to take this on rather than an answer? [Send an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “Personal. Professional. Responsive. Plus he saved me a bundle!” Corrin Skalbeck · Google Local Guide --- Source: https://www.everstonecpa.com/blog/gst-hst-quick-method-canada Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online