The GST/HST and QST Quick Methods offer one of the simplest ways for small businesses in Quebec to file sales tax returns. Instead of tracking every dollar of GST/HST and QST collected and claiming input tax credits line by line, eligible businesses can use a simplified calculation based on a fixed percentage of their sales. This significantly reduces bookkeeping time, removes the need for detailed tracking of GST/QST collected on each transaction, and often results in tax savings. Yet many business owners are unaware that the quick method exists or do not know how to apply it correctly. This guide explains how to use the GST/HST and QST Quick Methods, how to qualify, how to calculate your remittance, and how to keep your records audit-ready.

The quick method is ideal for consultants, freelancers, service businesses, small retailers, online professionals, and many self-employed individuals. It replaces complex GST/QST calculations with a simple formula while still allowing businesses to claim input tax credits on certain capital expenditures. For businesses with limited taxable purchases, the quick method is often more advantageous than the regular method.

LEGAL AND REGULATORY FRAMEWORK

The GST/HST Quick Method is authorized under the Excise Tax Act, and the QST Quick Method is governed by the Quebec Taxation Act. Both systems allow eligible small businesses to calculate their tax remittance using a reduced remittance rate rather than full GST/QST collected. Eligibility generally requires annual worldwide taxable revenues not exceeding four hundred thousand dollars before GST/HST and QST. Certain professions and industries are excluded, such as accountants, lawyers, financial advisors, and certain consultants.

Businesses must file an election with the CRA and Revenu Québec before using the quick method. Once elected, the business must continue using the quick method for at least one year unless its circumstances change. Businesses maintain invoice records but are not required to track GST/QST charged on each sale, except for internal reconciliation.

KEY COURT DECISIONS

Courts have upheld that businesses must meet strict eligibility requirements to use the quick method. In several rulings, taxpayers attempted to retroactively claim the quick method or used it despite exceeding revenue thresholds. Judges supported CRA and Revenu Québec reassessments, confirming that eligibility rules must be followed exactly.

Courts also emphasized that businesses must maintain sufficient documentation even when using the quick method. While the calculation is simplified, the business must still provide proof of sales, expenses, and capital purchases if audited. Lack of documentation has led to denied credits and additional assessments. These decisions reinforce that the quick method is simple but still requires compliance.

WHY CRA AND REVENU QUÉBEC TARGET THESE ISSUES

Tax authorities monitor quick method filings because some businesses mistakenly use the reduced rates even when they do not qualify. Common issues include exceeding the revenue threshold, failing to file the election on time, incorrectly claiming ineligible input tax credits, and misunderstanding which expenses qualify.

Audit triggers include sudden drops in GST/QST remittance amounts, inconsistent application of remittance rates, and missing election forms. Revenu Québec also reviews businesses that switch between the quick method and the regular method to ensure compliance with minimum usage periods.

MACKISEN STRATEGY

Mackisen CPA helps businesses evaluate whether the quick method is financially advantageous and legally permitted. We calculate projected tax savings, verify your industry eligibility, and file the required election forms with both CRA and Revenu Québec. Our team sets up your bookkeeping system to apply the quick method automatically and design internal schedules that keep your GST/QST documentation audit-ready.

We also analyze your purchases and capital expenditures to maximize the limited input tax credits permitted under the quick method. Mackisen prepares clear remittance schedules and offers guidance when transitioning between tax methods.

REAL CLIENT EXPERIENCE

A Montreal consultant with low business expenses switched to the quick method and significantly reduced their annual GST/HST and QST payments. Mackisen calculated the remittance rates, filed the election, and simplified their tax filing.

An online retailer exceeded the quick method threshold without realizing it and continued to use the quick method incorrectly. Revenu Québec questioned their filings. Mackisen corrected the returns, filed adjustments, and prevented penalties through timely disclosure.

A small design studio used the regular method for years without knowing they qualified for the quick method. Mackisen analyzed their expenses, confirmed eligibility, filed the election, and simplified their GST/QST workflow, saving them time and money.

COMMON QUESTIONS

Who qualifies for the GST/HST and QST Quick Methods
Businesses with annual revenues not exceeding four hundred thousand dollars before tax, excluding restricted professions.

How does the quick method calculate tax
Instead of remitting full GST/QST collected, you apply a reduced remittance percentage to your taxable sales.

Can you still claim input tax credits
Only on certain capital expenditures, not on regular operating expenses.

Can you switch back to the regular method
Yes, but you must use the quick method for at least one full fiscal year after electing it.

Is the quick method always cheaper
Not always. It depends on your expenses and margins. Analysis is required.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses simplify tax filing by using the GST/HST and QST Quick Methods correctly. Whether you are evaluating eligibility, looking to reduce administrative workload, or seeking to optimize your tax position, our expert team ensures precision, transparency, and compliance.