How to Claim the 1% Quick Method Credit on GST Remittances — Montreal CPA Firm

The GST Quick Method is a simplified way for eligible small businesses to file GST while keeping more money in their pocket. One of the biggest advantages is the 1% credit available on the first $30,000 of eligible taxable supplies each fiscal year. This credit reduces the amount of GST you must remit and increases your bottom line. Yet most businesses forget to claim it, apply it incorrectly, or don’t use the Quick Method at all. This guide explains how to properly claim the 1% credit using the same professional compliance system that Mackisen CPA Montreal applies to maximize client savings.

Why This Matters
If you qualify for the Quick Method but do not claim the 1% credit, you are literally giving money away. For many freelancers, consultants, IT professionals, and service businesses with low overhead, the Quick Method yields hundreds to thousands of dollars in additional retained income every year. But the rules must be followed precisely, or CRA may deny the credit or reassess you.

Legal and Regulatory Framework
The Quick Method is governed by the Excise Tax Act, and the credit is applied on the first $30,000 of eligible taxable supplies.
You must elect the Quick Method using Form GST74.
You must remain below the $400,000 revenue threshold to continue using it.
Key jurisprudence:
Hickman Motors (1997, SCC) — you must prove correctness of calculations
Canderel (1998, SCC) — filings must reflect commercial reality
Lac d’Amiante (2001, SCC) — CRA can reassess if documentation or calculation methods are flawed

A small consulting firm uses the Quick Method but forgets to apply the 1% credit for two years. During a CRA review, the auditor asks why the credit was never claimed. The business loses over $1,800 in missed credits, because CRA does not automatically apply it retroactively. Even worse, the firm must now amend multiple GST returns and justify discrepancies. This is a common and avoidable financial loss.

Learning Section: Who Qualifies for the Quick Method
You may use the Quick Method if:
Your taxable revenues (including zero-rated supplies) do not exceed $400,000
You operate primarily in a service-based business
Your expenses have low GST content
You are not in a restricted profession such as accounting, law, financial services, consulting where the Quick Method is disallowed
You have filed Form GST74 electing the method
You do not claim ITCs except on certain capital purchases
Service-based businesses benefit the most.

SEO Learning: Primary and Secondary Keywords
Primary: Quick Method 1% credit, GST Quick Method Quebec, small business GST savings Montreal.
Secondary: Form GST74 help, Quick Method remittance guide, GST credit calculation Quebec.

How the 1% Quick Method Credit Works
You apply a 1% credit on the first $30,000 of eligible taxable sales (excluding GST).
Example:
Sales: $30,000
GST collected: $1,500
1% credit = $30,000 × 1% = $300
This $300 directly reduces the net GST you must remit.

Step-by-Step: How to Claim the 1% Credit

Step 1: Verify Eligibility
Confirm taxable revenues under $400,000
Confirm business type is eligible
Confirm you have filed Form GST74

Step 2: Calculate Eligible Sales
The credit applies only to the first $30,000 of taxable supplies (excluding GST).

Step 3: Multiply by 1%
Eligible sales × 1% = Quick Method Credit

Step 4: Apply the Credit on the GST Return
On your GST return (GST34):
Enter the 1% credit on the designated line for Quick Method Credit
This reduces net tax owing

Step 5: Reconcile the Numbers
Ensure:
GST collected
Quick Method rate
1% credit
match your calculations and books.

Step 6: Maintain Documentation
Documentation must be available if CRA reviews the calculation.

Documentation Section
Quick Method election (GST74)
Sales reports
GST collected
Quick Method remittance calculations
1% credit calculation worksheets
GST34 filing confirmations
Bank statements showing remittances
These documents must be retained for six years.

Common Mistakes
Forgetting to claim the credit
Applying the credit to more than $30,000
Using the Quick Method without filing GST74
Claiming ITCs incorrectly under Quick Method
Applying credit on zero-rated or exempt supplies
Incorrectly calculating eligible sales
Not reconciling GST collected vs remitted
These errors lead to reassessments and lost credits.

Winning With Revenue Québec and Canada
Mackisen prepares the full Quick Method remittance calculation, applies the 1% credit correctly, reconciles all tax accounts, and builds documentation needed for CRA review. We verify your eligibility, set up your accounting software correctly, and ensure every credit you qualify for is claimed.

Mackisen Service Hub
We provide:
Quick Method eligibility analysis
GST74 filing
Quick Method calculation setup
GST remittance support
Documentation preparation
Audit defense
Refund and adjustment filing
Our rigorous system ensures full compliance and maximum savings.

Why Mackisen
With over 35 years of CPA, GST/HST, and QST expertise, Mackisen CPA Montreal ensures your Quick Method credit is applied correctly, your tax savings are maximized, and your filings are fully compliant. We protect your bottom line while safeguarding your business from CRA errors, omissions, and reassessments.