WILL THE GST QUICK METHOD SAVE YOUR BUSINESS MONEY?

The quick method accounting was introduced by Canada Revenue Agency (CRA) to help small businesses calculate their net tax for GST/HST purposes in a simplified manner.

When you use the GST quick method for your business, you still charge the applicable GST on your sales of taxable goods and services.

However, to calculate the amount of GST/HST payable, multiply your gross sales revenue (including the GST) for the reporting period by the quick method remittance rate.

The remittance rates of the quick method are less than the applicable rates of GST that you charge. This means that you remit only a part of the tax that you collect.   This can result in significant savings every year for many businesses.

You may be eligible if:

• Your sales are less than $400,000 and you don’t fall under one of the exceptions.
• You have minimal expenses  

To determine if this method will benefit your business financially:

• Find your applicable quick method rate based on type of business and location of sales
• Apply the rate to last year’s gross sales and compare with the GST that you owed last year.
• If the quick method amount is lower, then you may be a good candidate for the GST Quick Filing Method.