What is the GST Quick Method in Canada?

The Quick Method lets eligible GST/HST registrants remit a flat CRA-approved rate on total revenue including GST (8.8% in HST provinces, 3.6% in 5% GST provinces) instead of tracking every expense for input tax credits. You still charge clients the full GST/HST rate — the Quick Method only changes what you send to CRA.

Who can use the GST Quick Method in Canada?

You can use the Quick Method if your total worldwide taxable sales are $400,000 or less in the last four consecutive quarters. You cannot use it if you are an accountant, bookkeeper, financial advisor, lawyer, or actuary. Most freelancers, consultants, resellers, and side hustlers qualify.

Is the Quick Method always better than the Regular Method?

Not always. The Quick Method wins when your eligible business expenses are low relative to revenue. The Regular Method wins when you have high claimable expenses. For Ontario service providers, the break-even is roughly 32% of revenue in GST/HST-eligible expenses — above that threshold, the Regular Method saves more.

How do I elect the GST Quick Method with CRA?

File Form GST74 with CRA before the start of the reporting period you want it to apply to. You can file it online through My Business Account. The election stays in effect for at least one full fiscal year — you cannot switch back to the Regular Method immediately. File as early as possible after registration if you want it for your first year.

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GST/HST Remittance Guide

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 — no expense tracking required. For most Canadian 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.

Quick Answer

The Quick Method lets qualifying registrants (under $400,000 revenue) remit a flat CRA rate — 8.8% in HST provinces or 3.6% in 5% GST provinces — on total revenue including GST, with no ITC tracking required. For most low-expense service businesses, it saves money. The Regular Method wins when eligible business expenses exceed roughly 32% of revenue (Ontario). You must file Form GST74 to elect the Quick Method before your reporting period opens.

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% if you're in an HST province (Ontario, Maritime provinces)
3.6% if you're in a province with 5% GST

The flat rates for product sellers:

4.4% if you're in an HST province
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

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 NorthOS GST Quick Method Calculator to calculate your exact remittance.

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:

An accountant, bookkeeper, financial advisor, lawyer, or actuary
A charity or non-profit that claims the public service bodies rebate
A municipality or government entity

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.

The break-even point for an Ontario service provider is roughly 32% of revenue in GST/HST-eligible expenses. If your claimable business expenses exceed that threshold, the Regular Method produces a lower remittance.

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

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 must file an election with CRA using Form GST74 before the start of the reporting period you want it to apply to. You can file it online through My Business Account on the CRA website.

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

	Quick Method	Regular Method
Remittance calculation	Flat rate × total revenue including GST	GST collected minus GST paid on expenses
Expense tracking required	No	Yes — every eligible expense
Best for	Low-expense service businesses	High-expense businesses
Revenue limit	Under $400,000	No limit
Election required	Yes — Form GST74	Default method
CRA 1% credit	Yes — first year	No

The bottom line

For most Canadian freelancers, consultants, and service providers under $400,000 in revenue, the Quick Method saves money and eliminates the need to track individual business expenses for GST purposes. 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.

NorthOS calculates both methods automatically

Every time you log income and expenses in NorthOS, your estimated GST/HST remittance updates under both the Quick Method and Regular Method. You always know which one saves more — and exactly what to remit at filing time.

Disclaimer: This article is for informational purposes only and does not constitute tax advice. CRA rules can change — always verify with the CRA or a qualified tax professional.

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