Short on time but still want to stay compliant? The GST/HST Quick Method lets eligible small businesses in British Columbia simplify filings by remitting a CRA-set percentage of taxable sales instead of tracking input tax credits (ITCs) on most expenses. This article explains who qualifies, how it works, the calculation steps, and when to stick with the regular method.
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What is the Quick Method?
The Quick Method is an alternative way to calculate GST/HST remittance. Instead of claiming most ITCs, you apply a CRA remittance rate to your tax-included revenue (with certain adjustments) and remit that amount. You may still claim ITCs on select capital purchases.
- Simplifies tracking: fewer ITCs to monitor on day-to-day expenses.
- Predictable cash flow: remittance is a fixed percentage of sales.
- Still charge customers GST: You charge the applicable tax (e.g., 5% GST in BC) on invoices as usual.
Who qualifies in BC?
Eligibility is based on your worldwide taxable supplies (including those of associates) over the last four consecutive fiscal quarters, the nature of your business activity, and your filing status.
- Small supplier threshold: You must be under the CRA’s Quick Method limit for taxable sales (exclusive of GST/HST). (We’ll confirm your latest threshold.)
- Eligible industries: Many service-based and retail businesses qualify. Some sectors (e.g., financial, notary, certain real estate or if you primarily sell zero-rated supplies) may be excluded.
- Registration step: You must elect to use the Quick Method (effective from a reporting period start).
Unsure if you qualify? We’ll check your totals and industry rules: Schedule a quick check.
How the Quick Method works
- Charge GST/HST on your invoices as usual (BC is generally 5% GST for most taxable supplies).
- Determine tax-included revenue for the period (include taxable supplies, exclude zero-rated/exempt, and special items per CRA rules).
- Apply the CRA remittance rate that corresponds to your province and business type to the tax-included revenue.
- Subtract credits that the Quick Method still allows (e.g., the 1% credit on a portion of eligible supplies, if applicable under current rules; and ITCs on certain capital purchases).
- Remit the result with your return by the due date.
Note: CRA remittance rates differ by province and activity class. We’ll use the current BC rate table applicable to your business.
Quick Method calculation (illustrative)
Assume a BC service business with $105,000 tax-included revenue for the quarter (that’s $100,000 before GST + $5,000 GST charged). Suppose the applicable BC Quick Method remittance rate for your activity is R% (we’ll confirm your exact rate from the CRA table).
- Step 1: Remittance base = $105,000 (tax-included taxable supplies, after exclusions/adjustments).
- Step 2: Quick Method remittance = $105,000 × R%.
- Step 3: Subtract any applicable Quick Method credit (e.g., a 1% credit up to a specified cap on eligible supplies, if current rules allow for your case).
- Step 4: Subtract ITCs allowed on capital purchases (Quick Method still permits some capital ITCs).
- Result: Net GST/HST to remit for the period.
Why this can be beneficial: If your typical expenses have little GST (e.g., rent in BC, payroll), remitting a fixed percentage may produce similar or better outcomes than tracking ITCs—plus it’s simpler.
When the Quick Method may not fit
- Heavy ITC profile: If you pay significant GST on inputs (e.g., inventory with substantial GST, large subcontractor bills with GST), the regular method may yield larger ITCs.
- Mostly zero-rated sales: Quick Method isn’t intended for businesses primarily selling zero-rated supplies.
- Excluded sectors: Certain professions/activities are ineligible—we’ll confirm your status.
Not sure? We can run both methods side-by-side using your actuals and recommend the better fit.
How to elect, file, and switch
- Elect in: File the Quick Method election effective at the start of a reporting period.
- Configure your books: Update your invoicing and reporting workflow so your accounting system tracks tax-included revenue and flags excluded items correctly. Our Bookkeeping Services can set this up.
- File on time: Remit using the Quick Method calculation and keep source schedules as support.
- Reassess annually: If your ITC profile changes (e.g., bigger capex), we can model switching back to the regular method at the appropriate time.
BC Quick Method readiness checklist
- Confirm eligibility: trailing-four-quarter sales & industry rules verified.
- Pick your start date: align with a new reporting period.
- Map revenue: identify which sales are included/excluded; track zero-rated/exempt separately.
- Identify capital ITCs: list purchases where ITCs still apply under Quick Method.
- Build the calc sheet: revenue (tax-incl) × remittance rate ? credits ? allowed ITCs = amount to remit.
- Document policy: keep an internal memo and reconciliation with each return.
We can implement this flow in your software stack and prepare the workpaper each filing period.
Not sure if Quick Method saves you money? We’ll run both calculations on your real numbers and recommend a path. It takes 15 minutes to get started.
Quick FAQs
Do I still invoice GST at 5% in BC? Yes—your invoicing doesn’t change. The Quick Method only changes how you calculate what you remit.
Can I claim any ITCs? Generally not on routine expenses, but you can on certain capital asset purchases (and other limited exceptions). We’ll identify eligible items.
Can I switch back? Yes, but timing matters—usually at the start of a reporting period and subject to CRA rules. We’ll plan the transition and paperwork.
Bottom line for BC small businesses
The Quick Method can be a time-saver and a cash-flow stabilizer if your expenses don’t generate large ITCs. The best way to know is to compare Quick vs. Regular using your actuals. We’ll model both, set up your accounting system, and monitor results through the year.
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