GST/HST Quick Method
The Quick Method (ETA s. 227) lets eligible small businesses remit GST/HST at a reduced rate without tracking input tax credits on operating purchases. For low-expense service businesses it consistently saves money; for goods resellers or expense-heavy operations it can cost.
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Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →
1. Eligibility
- Taxable supplies (including zero-rated) ≤ $400,000 (incl. GST/HST) in the year and the prior four quarters
- Continuously registered for GST/HST throughout the year
- NOT in an excluded business (see s. 10)
2. Excluded businesses
Bookkeepers, accountants, tax preparers, financial consultants, legal professionals, actuaries, notaries, listed financial institutions — among others — cannot use the Quick Method.
3. Rates by province and business type (2025)
Two main categories: service providers and goods resellers. Rates differ by province of supply. Indicative rates (verify against ETA Schedule X / CRA tables before filing):
| Province (place of supply) | Services rate | Goods resale rate |
|---|---|---|
| ON, NB, NL (13% HST) | 8.8% | 4.4% |
| NS (HST 15% → 14% from 1 Apr 2025) | 10.0% (pre-Apr) / 9.4% | 5.0% / 4.4% |
| PEI (15% HST) | 10.0% | 5.0% |
| GST-only provinces (5%) | 3.6% | 1.8% |
4. $30k capital property ITC exception
ITCs are still claimable on capital property purchases (equipment, vehicles) ≥$30k threshold even on the Quick Method. Plan large capital purchases to recover the embedded tax.
5. First-$30k 1% credit
A 1% reduction applies to the first $30,000 of eligible supplies each fiscal year — a small but automatic bonus for Quick Method registrants.
6. Worked comparison — $100k ON service provider
Charges 13% HST → bills $113,000. Operating expenses with HST embedded $8,000 (incl. $920 HST).
Regular method: remit $13,000 − $920 ITC = $12,080.
Quick Method: remit 8.8% × $113,000 = $9,944; less 1% × $30,000 = $300 credit = $9,644.
Saving ≈ $2,440/year. Quick Method wins for expense-light services.
7. When it costs you
Goods resellers buying large inventory at HST-bearing cost lose more in foregone ITCs than they save on the reduced rate. Run the comparison annually.
8. Form GST74
Elect by filing Form GST74 by the first day of the second fiscal quarter for which the election is to apply. Annual filers elect for the entire year. Revoke with Form GST74 again (one-year minimum once elected).
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