How to Simplify GST/QST With the Quick Method: A Guide for Small Businesses — Montreal CPA

The GST/QST Quick Method is one of the most underused tax strategies available to small businesses in Quebec. Many entrepreneurs file their GST/QST returns the regular way, claiming ITCs/ITRs on every expense, even though their expenses are low and their administrative workload is high. The Quick Method allows eligible businesses to charge full GST/QST, but remit only a reduced percentage, keeping the difference as profit. This can save thousands of dollars per year and greatly simplify tax filing. But misunderstanding or misapplying the method can also trigger penalties, refunds being denied, or CRA/RQ corrections. This guide explains everything you need to know using Mackisen’s professional evaluation formula.

Why the Quick Method Matters
For the right business, the Quick Method simplifies compliance and increases profit. It eliminates the need to track ITCs/ITRs on most expenses, reduces audit risk, and improves cash flow. For service-based businesses with low expenses, the Quick Method often results in significant tax savings.

Legal and Regulatory Framework
The Quick Method is described under Section 227 of the Excise Tax Act (GST) and under the Tax Administration Act for QST. Eligible businesses must elect the method using Form GST74 for CRA and Form FP-2074 for Revenue Québec. Hickman Motors (1997) and Canderel (1998) require that businesses maintain accurate calculations even when using simplified methods.

What Happens When You Use the Quick Method Incorrectly
Imagine switching to the Quick Method without understanding the remittance percentages. After filing, Revenue Québec reviews your return and discovers that you remitted too little. They deny your calculation, reassess tax for the full period, apply interest, and potentially charge penalties. Worse, your refund claims may be frozen because your filing pattern appears inconsistent. Many businesses end up paying more due to improper setup.

Learning Section: Who Should Use the Quick Method
The Quick Method is ideal if:
Your business is primarily service-based
Your expenses have low GST/QST content
You operate as a freelancer, consultant, marketer, designer, coach, IT technician, or subcontractor
Your taxable revenues are under $400,000
You want simpler recordkeeping
You do not frequently purchase equipment or inventory
Businesses with high expense levels should NOT use the Quick Method.

SEO Learning: Primary and Secondary Keywords
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Secondary: GST74 election help, FP-2074 election Quebec, Quick Method vs regular method GST.

How the Quick Method Actually Works
You charge full GST/QST to clients
You do not claim ITCs/ITRs on most expenses
You remit GST/QST based on reduced remittance rates
You keep the difference as profit
You also receive a 1% credit on the first $30,000 of sales
Example:
On $100,000 of sales you collect $5,000 GST + $10,475 QST.
Using Quick Method rates (approx. GST 3.6%, QST 6.3%):
GST remitted = $3,600
QST remitted = $6,300
You keep the difference as additional income.

Documentation Section
Quick Method election forms (GST74, FP-2074)
Sales reports
Remittance calculations
Invoices showing taxes
Accounting system setup records
All required for six years.

Common Mistakes
Electing the Quick Method mid-year (must be at year start)
Misapplying remittance rates
Incorrect classification of zero-rated sales
Not reversing the Quick Method when business grows
Using Quick Method despite high ITC/ITR potential

Winning With Revenue Québec and Canada
Mackisen analyzes whether Quick Method is financially beneficial, prepares election forms, configures accounting systems, recalculates prior periods if needed, and ensures clients maximize savings safely. We help clients avoid incorrect remittance rates and ensure compliance during CRA/RQ reviews.

Mackisen Service Hub
We provide Quick Method evaluation, implementation, accounting setup, filing support, and audit-defense documentation.

Why Mackisen
With over 35 years of CPA expertise, Mackisen ensures your Quick Method filing is profitable, compliant, and error-free, protecting you from reassessments and maximizing tax savings.