Ontario HST Quick Method vs regular remittance

RC4058 says the Quick Method is for businesses with a permanent establishment in Canada whose annual worldwide taxable supplies (GST/HST included, with associates) are $400,000 or less in the first four or the last four of the last five fiscal quarters. Excluded businesses include bookkeeping, financial consulting, tax consulting and tax return preparation; legal, accounting and actuarial services; listed financial institutions; charities and public institutions. Confirm the current list in CRA RC4058. This site does not decide whether you qualify.

Usually, yes. RC4058 says you can use Quick Method if you have been in business continuously throughout the 365-day period ending immediately before the reporting period you want it to start in, and you did not revoke a Quick Method (or simplified ITC method) election during that same 365 days. If you revoked an earlier election, you generally wait at least one year from the date the revocation took effect before you can elect again.

New registrants: if you have not been in business for a full year, you may still elect if you can reasonably expect your revenues from worldwide taxable supplies (with associates, GST/HST included) to be $400,000 or less in your first full year of business. Sources: CRA RC4058, “Determine if you can make this election” and Streamlined Accounting (GST/HST) Regulations, s. 16 and 18.

RC4058 says the election generally stays in effect as long as your annual worldwide taxable supplies (GST/HST included, with associates, including zero-rated supplies) do not exceed $400,000. If they do, you have to switch to the regular method. The switch date depends on how you file:

• Annual filers: at the beginning of your next fiscal year, if you exceed $400,000 in your current fiscal year.
• Monthly or quarterly filers on the Quick Method at the start of the fiscal year: at the beginning of the second fiscal quarter, if you exceeded $400,000 in your previous fiscal year.
• Monthly or quarterly filers who elected part-way through the fiscal year: at the beginning of your next fiscal quarter, if you exceeded $400,000 in both the first four and the last four consecutive quarters of your previous five fiscal quarters.

In the RC4058 example, a quarterly filer with a December 31 year-end had $416,000 of tax-included sales in 2024, so it moved to the regular method on April 1, 2025. Leave out financial services, sales of real property and capital assets, and goodwill from the sale of a business when you add up sales. Source: CRA RC4058, “Duration of this election”. Close to the line? Compare both methods in the calculator.

Yes in the usual case. Quick Method changes how you remit, not the HST rate printed on the invoice. Ontario remittance defaults in this tool are 8.8% of tax-included supplies for services (goods for resale 4.4%) for a permanent establishment in Ontario on 13% HST supplies. See all Ontario Quick Method rates.

When the election is in effect at the start of the fiscal year, you may deduct 1% of the first $30,000 of eligible tax-included supplies (maximum $300 per fiscal year). Toggle it off in the calculator if it does not apply to you.

1. Confirm eligibility against RC4058 (threshold, excluded businesses, permanent establishment, and the 365-day rule).
2. Elect in My Business Account, through Represent a Client, or with Form GST74. Annual filers elect by the first day of the second fiscal quarter; monthly and quarterly filers by the due date of the return for the period they start in.
3. Stay on it for at least one year. You can revoke it only after it has been in effect for a year.
4. File as usual (electronically). Use this estimate as a worksheet aid only, not an instruction to elect.

Step-by-step guide: how to elect the Quick Method.

When the HST you paid on everyday business purchases is below the break-even amount. With this calculator's default inputs ($80,000.00 of Ontario service sales), the Quick Method remittance is $7,655.20 against $10,400.00 of HST collected, so the break-even is $2,744.80 of ITCs, about $21,113.85 of 13%-taxed expenses. Spend less than that and the Quick Method usually wins. See the full comparison.

Only for some purchases. RC4058 lets Quick Method users claim ITCs on capital assets such as computers and vehicles, on real property, and on certain other listed items. Day-to-day expenses such as supplies, phone and software are not claimed separately.

For an annual filer who is an individual with business income and a December 31 year-end, the return is due June 15 and any balance owing must be paid by April 30. Monthly and quarterly filers file and pay one month after each period. See HST filing deadlines.