The GST/HST Quick Method is one of the simplest ways for small Canadian businesses to cut both their tax bill and their bookkeeping time — yet most owners have never heard of it. Here's how it works in 2025 and how to tell if it's worth electing.
Normally you remit the GST/HST you collect minus the GST/HST you paid on expenses (input tax credits). Under the Quick Method, you instead remit a lower flat percentage of your GST-included sales and keep the difference. You give up most input tax credits in exchange for the simpler, usually-lower remittance.
The rate depends on your business type and province. For a service business in Alberta (GST only), the remittance rate is roughly 3.6% of GST-included sales; for goods-reselling businesses it's lower. You also get a 1% credit on the first $30,000 of eligible supplies each year.
| Item | Regular method | Quick Method |
|---|---|---|
| Sales | $100,000 + $5,000 GST | $105,000 GST-included |
| Remit | $5,000 − ITCs (say $800) = $4,200 | $105,000 × 3.6% − 1% credit ≈ $3,480 |
| You keep | — | ~$720 more |
The Quick Method usually wins for service businesses with low taxable expenses. If you buy a lot of taxable supplies, the regular method's input tax credits may be better. Learn the basics in our GST/HST for small business guide.
Not sure which method fits? Our Calgary bookkeeping team runs the comparison and files the election. Ask us.
The Quick Method is a simplified GST/HST accounting option where you remit a lower flat percentage of your GST-included sales instead of collected-tax-minus-input-tax-credits. You keep the difference but give up most input tax credits, making it simpler and often cheaper for service businesses.
Businesses with annual GST/HST-included taxable supplies of $400,000 or less that have been registered throughout the year. Certain businesses are excluded, including accountants, bookkeepers, and some legal and financial services.
For a service business with low taxable expenses, the Quick Method often saves several hundred to a couple thousand dollars a year versus the regular method, plus a 1% credit on the first $30,000 of eligible supplies. Businesses with high taxable purchases may do better claiming input tax credits.
It's usually worth it for service businesses in provinces like Alberta that have few taxable expenses to claim as input tax credits. The best way to decide is to compare both methods on your actual numbers before electing.
Have questions about business tax? Swift Accounting Ltd. helps Calgary business owners get it right. Contact us for a free consultation.
