Quick Method vs Regular GST: Which One Is Right for Your Business?

Written By Indy Kaur

What is the Regular Method?

The Regular Method is the default way of reporting GST/HST.

How it works:

  • You charge GST/HST on your sales

  • You claim Input Tax Credits (ITCs) on your expenses (excludes payroll, insurance, bank charges, etc.)

  • You remit the difference to the CRA

Best for:

  • Businesses with higher expenses

  • Product-based businesses

  • Companies with significant input costs

This method is more accurate — but requires proper tracking.

What is the Quick Method?

The Quick Method is designed to simplify GST/HST reporting for small businesses.

How it works:

  • You still charge full GST/HST to clients

  • But remit a reduced fixed percentage to CRA

  • You don’t claim most ITCs

Best for:

  • Service-based businesses

  • Businesses with low expenses

  • Consultants, coaches, freelancers

Who Qualifies for the Quick Method?

You may be eligible if:

  • Your annual taxable revenue is under $400,000

  • You operate a small business or service-based business

  • You are not in excluded industries (like accountants, lawyers, etc.)

For full CRA eligibility and rates, see the official guide:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4058/quick-method-accounting-gst-hst.html

Indy Kaur https://www.mindfultax.ca
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