GST Quick Method vs Regular Method: Which One Saves You More?

Once you're registered for GST/HST, you have a choice that most new registrants don't know exists. The Regular Method means tracking every dollar of GST you paid on business expenses and subtracting it from what you collected. The Quick Method means multiplying your total revenue by a flat CRA rate and remitting that, which means far less expense tracking for GST purposes. You still keep records, and you can still claim ITCs on capital purchases like equipment. For most low-expense sole proprietors and freelancers, the Quick Method saves both time and money. But not for everyone. This guide shows you how to calculate which one is better for your situation.

How the Regular Method works

Under the Regular Method, you remit the difference between GST/HST you collected from clients and GST/HST you paid on eligible business expenses (called Input Tax Credits or ITCs).

Example — Ontario consultant, $60,000 revenue:

• GST/HST collected: $60,000 × 13% = $7,800
• ITCs claimed on $8,000 in eligible expenses: $8,000 × 13% = $1,040
• Amount remitted to CRA: $7,800 - $1,040 = $6,760

The Regular Method rewards businesses with high eligible expenses. If you spend heavily on equipment, subcontractors, software, or supplies that all carry GST/HST, tracking those ITCs can reduce your remittance significantly.

The downside: you need to track every eligible expense carefully throughout the year. Miss a receipt and you lose the ITC.

How the Quick Method works

Under the Quick Method, you multiply your total revenue including GST/HST by a flat CRA-approved rate. You still charge your clients the full GST or HST rate — the Quick Method only changes what you send to CRA.

The flat rates for service providers:

• 8.8% in Ontario (13% HST)
• 9.4% in Nova Scotia (14% HST)
• 10% in New Brunswick, Newfoundland & Labrador, and PEI (15% HST)
• 3.6% if you're in a province with 5% GST

The flat rates for product sellers:

• 4.4% in Ontario (13% HST)
• 4.7% in Nova Scotia (14% HST)
• 5% in New Brunswick, Newfoundland & Labrador, and PEI (15% HST)
• 1.8% if you're in a province with 5% GST

Example — Ontario consultant, $60,000 revenue:

• Total including HST: $60,000 + $7,800 = $67,800
• Quick Method remittance: $67,800 × 8.8% = $5,966
• Saving vs Regular Method: $6,760 - $5,966 = $794

The intuition: an Ontario service provider collects 13% HST from clients but only remits 8.8% to CRA under the Quick Method. You keep that spread, and it is the built-in benefit that makes the Quick Method win for most low-expense service businesses.

CRA also gives you a 1% credit on the first $30,000 of tax-included revenue each fiscal year — worth up to $300 — in the year you first elect the Quick Method.

Use the GST/HST Remittance Calculator to compare both methods side by side with your exact numbers.

If you are in Quebec: the QST has its own Quick Method

Quebec is a 5% GST province for federal purposes, so the federal Quick Method rates above apply: 3.6% for services and 1.8% for goods on your GST-included revenue, filed with the CRA. The difference is that Quebec also has its own provincial sales tax (the QST, 9.975%), administered by Revenu Québec rather than the CRA.

The QST has a separate Quick Method with its own remittance rates: 6.6% for service providers and 3.4% for goods sellers, applied to your QST-included revenue and filed on Revenu Québec form VDZ-471. So a Quebec registrant using the Quick Method files two returns each period: the federal GST return and the provincial QST return, each at its own rate.

Revenu Québec also mirrors the federal 1% credit, applied to the first $31,421 of QST-included eligible supplies in the year you first elect. NorthOS calculates both the federal GST and the provincial QST Quick Method remittances automatically for Quebec accounts.

Who qualifies for the Quick Method

You can use the Quick Method if your total worldwide taxable sales (including associates) are $400,000 or less in the last four consecutive calendar quarters.

You cannot use the Quick Method if you are:

• A business that provides legal, accounting, actuarial, bookkeeping, financial consulting, or tax-return-preparation (tax consulting) services
• A charity or non-profit that claims the public service bodies rebate
• A municipality, government entity, or certain other listed bodies

Most sole proprietors, freelancers, consultants, resellers, and side hustlers qualify.

When the Regular Method wins

The Quick Method is not always better. The Regular Method saves more money when your eligible business expenses are high relative to your revenue.

As a rough rule of thumb, an Ontario service provider reaches break-even somewhere around a third of revenue in GST/HST-eligible expenses. This is a simplified estimate, not a CRA rule. The exact crossover depends on your expense mix, your ITC eligibility, and the 1% credit, so run both methods on your own numbers.

Common situations where Regular Method wins:

• You lease an office and pay HST on rent
• You have significant subcontractor costs that carry HST
• You purchase equipment regularly
• Your startup year has high one-time expenses

One more difference worth knowing: the Regular Method can produce a refund, while the Quick Method almost never does. In a quarter where you make large GST/HST-eligible purchases, your ITCs under the Regular Method can exceed the GST/HST you collected, and CRA refunds the difference. The Quick Method remits a flat percentage of revenue instead of netting your ITCs, so it rarely results in a refund.

If you're unsure which side of the line you fall on, calculate both and compare. NorthOS shows you both estimates automatically.

How to elect the Quick Method

You elect with CRA using Form GST74, filed online through My Business Account. The deadline depends on how often you file: annual filers must elect by the first day of their second fiscal quarter, while monthly and quarterly filers have until the due date of the return for the period in which they start using the Quick Method.

The election stays in effect for at least one full year. You cannot switch back to the Regular Method immediately if you change your mind.

If you're in your first year of GST/HST registration and you want to use the Quick Method for the full year, file the election as soon as your registration is approved — before your first reporting period opens.

Quick comparison

The bottom line

For most low-expense Canadian freelancers, consultants, and service providers under $400,000 in revenue, the Quick Method saves money and greatly reduces the need to track individual business expenses for GST purposes (you still keep records and can claim ITCs on capital purchases). The math is simple, the election is straightforward, and the savings are real.

If you have high eligible business expenses — significant equipment purchases, subcontractor costs, or office rent — run the numbers on both methods before deciding. The Regular Method can win in those situations.

NorthOS calculates your estimated remittance under both methods automatically so you always know which one is better for your current revenue and expense mix.