1 October 2025
GST/HST Quick Method in BC: Who Qualifies and How to Calculate
The GST/HST Quick Method offers eligible small businesses in British Columbia a simplified way to calculate and remit GST/HST. Instead of tracking input tax credits (ITCs) on every expense, you remit a fixed percentage of your tax-included sales. This method can save time, simplify bookkeeping, and potentially improve cash flow—but it's not right for every business. This comprehensive guide explains who qualifies, how it works, when to use it, and how to calculate your remittance.
Why Consider the Quick Method?
The GST/HST Quick Method can be a game-changer for BC small businesses with low ITC profiles. Instead of tracking GST paid on every expense, you remit a fixed percentage of sales (typically 1.8% or 3.6% in BC depending on your business type). For service businesses with minimal GST expenses (like rent, payroll, or professional services), this often results in lower remittances and simpler bookkeeping. However, businesses with high ITC expenses may find the regular method more beneficial.
What Is the GST/HST Quick Method?
The Quick Method is an alternative GST/HST calculation method that simplifies remittance for eligible small businesses. Here's how it differs from the regular method:
Regular Method
How it works: Charge GST on sales, claim ITCs on all eligible expenses, remit the difference.
- Track GST on every expense
- Claim ITCs on all eligible purchases
- Remit: GST collected - ITCs claimed
- More paperwork and tracking
Quick Method
How it works: Charge GST on sales, apply remittance rate to tax-included revenue, limited ITCs on capital purchases only.
- No ITC tracking on routine expenses
- Fixed percentage of sales
- Remit: Sales × Remittance Rate
- Simpler and faster
Who Qualifies for the Quick Method in BC?
Not all businesses qualify for the GST/HST Quick Method. Eligibility depends on your sales volume, business type, and other factors:
Sales Threshold
Your worldwide taxable supplies (including associates) must be under the CRA threshold:
Calculated over the last four consecutive fiscal quarters (excluding GST/HST).
Eligible Business Types
Most service-based and retail businesses qualify, including:
- Professional services (accounting, legal, consulting)
- Retail stores
- Restaurants and food services
- Personal services (salons, fitness)
- Contractors and trades
Excluded Businesses
Some businesses cannot use the Quick Method:
- Financial services
- Real estate agents/brokers
- Notaries
- Businesses primarily selling zero-rated supplies
- Public service bodies (with exceptions)
BC Quick Method Remittance Rates
British Columbia uses specific remittance rates based on your business type. These rates are applied to your tax-included revenue:
BC Quick Method Rates (2025)
| Business Type | Remittance Rate | 1% Credit | Effective Rate |
|---|---|---|---|
| Eligible small suppliers (First $30,000 of eligible supplies) |
3.6% | -1.0% | 2.6% |
| Eligible small suppliers (Over $30,000) |
3.6% | — | 3.6% |
| Other eligible businesses (First $30,000) |
1.8% | -1.0% | 0.8% |
| Other eligible businesses (Over $30,000) |
1.8% | — | 1.8% |
Note: The 1% credit applies only to the first $30,000 of eligible supplies per year. "Eligible small suppliers" typically refers to businesses with annual sales under $400,000. Rates are subject to change—verify current rates with CRA or your accountant.
How to Calculate Quick Method Remittance
Calculating your Quick Method remittance involves several steps. Here's a detailed walkthrough:
Step-by-Step Calculation
Determine Tax-Included Revenue
Start with your total taxable supplies including GST/HST. Exclude zero-rated supplies, exempt supplies, and certain other items per CRA rules.
Apply Remittance Rate
Multiply your tax-included revenue by the applicable remittance rate (1.8% or 3.6% in BC, depending on your business type).
Subtract 1% Credit (if applicable)
If you're an eligible small supplier and your first $30,000 of eligible supplies qualifies, subtract 1% of that amount (up to $300).
Subtract Capital Purchase ITCs
You can still claim ITCs on certain capital purchases (equipment, vehicles, etc.). Subtract these from your remittance.
Final Remittance Amount
This is the amount you remit to the CRA for the period.
Real-World Calculation Examples
Let's compare the Quick Method vs. Regular Method using real scenarios:
Example 1: Service Business (Low ITCs)
Business: Consulting firm
Quarterly Sales: $100,000 + $5,000 GST = $105,000
ITCs: $500 (minimal expenses)
Regular Method
Quick Method
Example 2: Retail Business (High ITCs)
Business: Retail store
Quarterly Sales: $100,000 + $5,000 GST = $105,000
ITCs: $4,200 (inventory purchases)
Regular Method
Quick Method
When to Use the Quick Method
The Quick Method works best for specific business profiles. Here's when it makes sense:
✅ Ideal for Quick Method
- Service businesses with minimal GST expenses (consulting, professional services, personal services)
- Businesses with low ITCs (mostly labor costs, rent, or services with no GST)
- Small businesses wanting simpler bookkeeping
- Businesses with predictable cash flow needs
⚠️ Not Ideal for Quick Method
- Retail businesses with high inventory purchases and ITCs
- Manufacturing businesses with significant material costs
- Contractors with large subcontractor expenses
- Businesses with ITCs exceeding approximately 60% of GST collected
How to Elect the Quick Method
Electing the Quick Method requires proper timing and documentation:
Election Process
Switching Back to Regular Method
You can revoke your Quick Method election, but timing matters:
Revocation Rules
- Revocation must start at the beginning of a reporting period
- File Form RC460 with your GST return for the period when revocation takes effect
- You can switch back if your ITC profile changes (e.g., you start buying more inventory)
- Once revoked, you must wait at least one year before re-electing (with exceptions)
Quick Method Checklist
Use this checklist to determine if the Quick Method is right for your business:
Frequently Asked Questions
Yes! You still charge GST/HST at the full rate (5% GST in BC) on all taxable supplies. The Quick Method only changes how you calculate what you remit to the CRA. Your customers pay exactly the same amount regardless of which method you use.
Under the Quick Method, you generally cannot claim ITCs on routine expenses (office supplies, rent, utilities, etc.). However, you can still claim ITCs on certain capital purchases (equipment, vehicles, furniture) and a few other limited exceptions. The rules are specific, so consult with your accountant to identify eligible capital purchases.
The best way is to compare both methods using your actual numbers. Calculate what you would remit under the regular method (GST collected minus ITCs) versus the Quick Method (sales × remittance rate minus credits). Generally, if your ITCs are less than about 60% of GST collected, the Quick Method may save money. We can model both methods for you to determine which is better.
Yes, you can revoke your Quick Method election, but it must be done at the start of a reporting period. File Form RC460 with your GST return for the period when you want to switch back. Once revoked, you typically must wait at least one year before re-electing (with some exceptions). If your business changes and you start having higher ITCs, switching back may make sense.
If your worldwide taxable supplies exceed $400,000 (including associates) over any four consecutive fiscal quarters, you're no longer eligible for the Quick Method. You must revoke your election and switch back to the regular method. The revocation takes effect at the start of the reporting period following the quarter when you exceeded the threshold.
Get Expert Help with GST/HST Quick Method in BC
Determining whether the Quick Method saves you money requires comparing both methods using your actual numbers. J. Wang Chartered Professional Accountant offers GST/HST Quick Method analysis to help BC small businesses determine eligibility, model both calculation methods, and implement the best approach for their situation.
Schedule Your Quick Method Analysis
Let's compare both methods using your actual numbers and determine if the Quick Method saves you money
Need help with other GST/HST matters? We also assist with GST/HST registration and filing, tax planning, and bookkeeping services. Schedule an appointment with our Vancouver accounting team today.
