What is the GST/HST Quick Method and who can use it?
Allan Madan, CA
The GST/HST Quick Method is a simplified type of accounting available to small businesses for calculating their net sales tax for GST/HST purposes. The major benefit of choosing this method is reduced paperwork and easier calculation. This option is available for small businesses with annual revenue of less than $400,000 (restrictions may apply).
How it works is this. In a simplified scenario, assume that you are a qualified small business with revenue less than $400,000 operating in Ontario. You collect 13% HST on your invoice to clients. You remit 8.8%* of 13% to the CRA and keep the rest.
* Remittance rate may differ for different industry and province.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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