[?] Subscribe To The Bookkeeping Blog

XML RSS
Add to Google
Add to My Yahoo!
Add to My MSN
Subscribe with Bloglines


Home
The Support
The Site Map

The Tea Break
 The Tea Shoppe
The Virtual eGuide
The Online Exams
The Excel Lessons
The Free Ezine
The Forum
The Blog

The Receipts Organization
 The Filing eBook
The Scanning
The Vehicle System
The Suggestions

The Tax - Canada
 The CRA Compliance
The CRA News
The Small Biz News
The GST HST
The CRA Tax
The T2125 Form

The Tax - U.S.
 The IRS News
The Payroll Taxes
The Rates & Dates

The Bookkeeping
 The Basics
The Practice
The Training
The System
The Plan
The Tips
The Help

The Back Office
 Contact/Meet Me
Hire Me
Site Policies

GST HST Quick Method Rates

Current and Historical Rates

The GST HST Quick Method rates can be used if you:

  • have filed an election on Form GST74 Election and Revocation of an Election to use the Quick Method of Accounting; AND

  • have less than $200,000 in sales excluding financial services, goodwill, real property and capital asset sales.



image of a calculator used to calculate quick method tax rates courtesy of John Nettleship

Use this search feature to quickly find the information you're looking for.

Custom Search






How the Quick Method Works

You still charge the applicable GST/HST rate when making a sale.

However, under the Quick Method, only a portion of the sales tax collected gets remitted to CRA. In general, you do not collect input tax credits ... there are some exceptions. The exceptions are reported on Line 106 of your GST/HST return.

The amount you do remit to CRA is determined by preset Quick Method remittance rates, found in the table farther down on this page.

The GST/HST Quick Method has two different class groups:

(1) businesses that provide services; and

(2) businesses that purchase goods for resale.


Make sure you select the correct class group. Each class group is further broken down into participating province (PP) or non-participating province (NPP).


A participating province is a province that charges HST such as Newfoundland, Labrador, New Brunswick, Ontario, Nova Scotia (NS), and British Columbia (BC).

A non-participating province is a province that charges GST such as Alberta, Saskatchewan, Manitoba, PEI and the three territories.

You can see that with the new place of supply rules ... and the introduction of different HST rates in BC and Nova Scotia, this simplified method of accounting may require a bit more paperwork than before.

As of July 1, 2010, you may have to use more than one remittance rate if you have sales in more than one province. This means this method may no longer be "quick" for you as you have to track sales by each quick method tax group ... there are four.

The new place of supply rules did not affect the 1% credit on the first $30,000 of supplies made each year. There is NO change. This credit is entered on Line 107 of your GST/HST return.

Let's take a brief glance at how the new place of supply rules may affect how you file your GST/HST return.



Overview of Place of Supply Rules

Place of supply rules for goods did not change ... and are still based on where the good is delivered to your customer. If your customer was in your store purchasing goods, the customer is located where your store is.

New place of supply rules for services and intangible personal property are now based on the province of the customer which may not be the same place as where the work is performed. If your customer is in a non-participating province (GST), you would charge GST only. If your customer is in a participating province (HST), you would charge HST.

Sales to customers outside of Canada are zero rated.

So here is how the new rules may affect you.

If you only have customers in your province, then all you need to do is find your new Quick Method rate on the table below. Nothing has really changed for you in how you track and report GST/HST.

If you have supplies (sales to customers) in more than one participating and /or non-participating province, you may still only have to use one Quick Method rate when preparing your GST/HST return.

There is a special rule that says if 90% or more of your supplies (sales to customers) were made through your permanent establishment (where your business resides), you can assume all supplies (sales to customers) were made in that province and use the appropriate participating/non-participating Quick Method rate.

However, if you have supplies (sales to customers) in more than one participating and /or non-participating province ... and you don't meet the 90% rule ... you will have to use (and track) more than one rate group.

The Bookkeeper's Tip - Consider setting up separate sales account in your chart of accounts to track the different remittance rates.

I'd also code all my GST/HST paid to a separate expense account so I could determine if the Quick Method of accounting for GST/HST was costing me more than using the regular reporting method.



Ineligible Businesses

The CRA website says the following businesses are not eligible to use the Quick Method of accounting for GST/HST:

  • accountants or bookkeepers;

  • tax return preparation services or tax consultants;

  • audit services;

  • financial consultants;

  • lawyers (or law offices);

  • notaries public;

  • actuaries; or

  • listed financial institutions.




GST HST Quick Method Rates - Current

When you use this method of accounting for GST/HST, you collect the applicable sales tax as usual. You must also track/categorize your sales by the rate paid.

However, when you prepare your GST/HST report on form GST34-2 E or form GST34-3 E, you remit using the Quick Method rates in the tables below.


Check the CRA website for the goods and services that are NOT eligible for the Quick Method rate located at A to Z index>select the letter Q under Topics for GST/HST> Quick Method of accounting.

These amounts are remitted in full and offset by input tax credits you are eligible to claim such as real property and capital asset purchases ... or purchase amounts made before you elected the Quick Method.


To use this table, find your classification in the first column, then follow across. So for example I am located in BC and provide a photography service to an Ontario resident and an Alberta resident.

For the Ontario client, I would select "Services - supplies made in PP-Oth* to " ... and follow across to the Your Business is in PP-BC column where the tax rate is 9.0%.

For the Alberta client, I would select "Services - supplies made in NPP to " ... and follow across to the Your Business is in PP-BC column where the tax rate is 2.1%.

The GST/HST Quick Method rates as of July 1, 2010 are:

Rate Group
PP=Participating Province
NPP=Non Participating Province		Your business
is in
PP-BC		Your business
is in
PP-NS		Your business
is in
PP-Oth*		Your business
is in
NPP
Services
supplies made (customers)
in NPP to		2.1%1.4%1.8%3.6%
Services
supplies made (customers)
in PP-Oth* to		9.0%8.4%8.8%10.5%
Services
supplies made (customers)
in PP-BC to		8.2%7.6%8.0%9.7%
Services
supplies made (customers)
in PP-NS to		10.6%10.0%10.4%12%
Goods for resale
supplies made (customers)
in NPP to**		0%
(2.3% credit)		0%
(4.0% credit)		0%
(2.8% credit)		1.8%
Goods for resale
supplies made (customers)
in PP-O* to		5.0%3.3%4.4%8.8%
Goods for resale
supplies made (customers)
in PP-BC to		4.1%2.5%3.6%8.0%
Goods for resale
supplies made (customers)
in PP-NS to		6.6%5.0%6.1%10.4%

*Others = Newfoundland, Labrador, New Brunswick, and Ontario
** The credit is entered on Line 106 of your GST/HST return.



You can double check for the correct GST HST Quick Method rate in the CRA publication RC 4058 Quick Method of Accounting for GST/HST. Look in the Table of Contents for the question What are my Quick Method remittance rates?

Quick rates for public bodies can be found in the CRA publication RC4247 The Special Quick Method of Accounting for Public Service Bodies.



GST HST Quick Method Rates - Historical

Prior to July 1, 2010, the participating provinces (PP) were Newfoundland, Labrador, New Brunswick and Nova Scotia ... and the non-participating provinces (NPP) were Alberta, Saskatchewan, Manitoba, PEI, BC, Ontario and the three territories.



Rate Group
PP=Participating Province
NPP=Non Participating Province		Jan 1, 2008
to
Jun 30, 2010		Jul 1, 2006
to
Dec 31, 2007
Services - supplies made
in NPP to
permanent establishment in NPP		3.6%4.3%
Services - supplies made
in NPP to
permanent establishment in PP		1.8%2.6%
Services - supplies made
in PP to
to permanent establishment in NPP		10.5%11%
Services - supplies made
in PP to
permanent establishment in PP		8.8%9.4%
Goods for resale - supplies made
in NPP to
permanent establishment in NPP		1.8%2.2%
Goods for resale - supplies made
in NPP to
to permanent establishment in PP		0% (2.8% credit)0% (2.5% credit)
Goods for resale - supplies made
in PP to
to permanent establishment in NPP		8.8%9%
Goods for resale - supplies made
in PP to
to permanent establishment in PP		4.4%4.7%



This page is only an overview of the Quick Method of accounting. If you are using this method, please read the CRA publication RC 4058 Quick Method of Accounting for GST/HST.




The Bookkeeping Forum Q&A Links

Quick Method Discussions In Progress

Here are Quick Method related topics ... that have been covered in The Bookkeeping Forum. Feel free to check them out and give your opinion or share your expertise.

As more questions are asked, more links will show up here. So if you have a question ... and are willing to be patient while I use my resources to research and / or learn along with you ... ask away.

When I say patience ... I do mean it ... as I never use the Quick Method. I think it is faster and easier to keep a set books eliminating the need to use the Quick Method.

GST/HST  starstarstarstarstar
As I am a small business, I have elected to use the Quick Method.

Only trouble is I am not sure (how to file my return) as we switched to HST July 1st ...

GST/HST Simplified Method  starstarstarstarstar
I am wanting to use simplified method for HST remittance - are there two separate forms - I was mailed GST34-2E. I am a new business - just opened November ...

GST HST Quick Method  starstarstarstarstar
September 2010 - Please be aware that the original post and some of the comments were made prior to the new place of supply rules that went into effect ...

Switching to HST Quick Method  Not rated yet
Hi Lake,

Great site with lots of very helpful information.

I am registered for BC HST and have elected to use the quick method as I am a service ...

US Sales on Quick Method HST Return  Not rated yet
When doing a Quick Method HST return, do I include the US sales with no HST charged in the total sales for the 1% deduction on the first $30,000.00?

Help - GST and Gross Sales  Not rated yet
Hello all,

I am trying to get my 2010 taxes filed and am running into some confusion.

I am a computer consultant providing computer services strictly ...

How to Revoke the Quick Method  Not rated yet
Can I switch methods?


If we have been filing under the QUICK method for a number of years, are we able to switch to the SIMPLIFIED method for 2011 ...

Quick Method  Not rated yet
How do I fill out the HST return for the Quick Method?

If I put on line 101 Sales and Other Revenue $4905, I should pay $402.00 with my rate for the ...



image of script writing that says,




Other Pages That May Be Of Interest

Bookkeeping Forum on the GST HST Quick Method

Overview of the Quick Method

GST/HST Rates

GST/HST Compliance Information and Deadlines

Return to Home Page From GST HST Quick Method Rates


New! Comments

Have your say about what you just read! Leave me a comment in the box below.

© 2009-2012 Lakeshore Bookkeeping Services
All Right Reserved. Do not duplicate without permission.

Inquire about my virtual bookkeeping services in Canada today.
Committed to educating & providing support to work from home business owners.

SIMPLE EASY
Office Filing System

Learn How to Organize Files
In Under 30 Minutes
$47

Bookkeeping In A Box eBook- choose the Canadian or US Version

Download eBook Canadian

Download eBook U.S.



You can delegate responsibility but you can't abdicate it!



2 Bookkeeping Tests
Prescreening Tool or Study Aid
350 Questions

includes answer key,
Bookkeeping Basics Webcast
and more

Bookkeeping Test Questions and Answers Bookkeeping Test Online Basic Bookkeeping Training

$49 USD
LIFETIME ACCESS

Click on exam booklet to order
Click here for more information

How to Use This Exam:

(1) As part of your interview process when hiring a bookkeeper.

(2) To self assess your bookkeeping skills.

(3) As a practise test before writing your bookkeeping certification exam.



Learn How to Turn
Your Piles of Paper
Into an Organized
Electronic System

Paperless Document Organization Guide

Click on the picture above
for easy to understand tips and strategies on how to go paperless.



Free eReport When You
Subscribe To My Newsletter
The Bookkeeper's Notes

eBook cover



Subscribe To
The Bookkeeper's Notes
A Free Newsletter
For The Work From Home Business Owner

Email

Name

Then

Don't worry -- your e-mail address is totally secure. I promise to use it only to send you The Bookkeeper's Notes.



Brian Tracy's

Click here to receive Brian Tracy's Free Goal Setting Success Guide!




(Listed Under Websites NOT Under Local Business. This website is not associated with any business operating in Bonnyville Alberta.)



From the Mail Bag
Visitor Comments



Thanks for the information. It is nice to see there is an online site where I can go get answers to my bookkeeping questions. It was really a stroke of luck I came across this site. I googled my bookkeeping question to see if I could get an answer, a shot in the dark, and bookkeeping-essentials was one of the results listed. I looked over some other sites but none were as flexible as this site. I got a quick response and I will be using this site in the future. Thanks again.

Bayside, NY, United States



I love your site...its very homey!!! It's like reading/talking to a friend!! Thanks!!

Kim, Jackson, MS United States



Your website is positively BRILLIANT! I don't care at all for the numbers side of my business, but you've made it interesting, fun, comfortable--downright enjoyable! Bite-sized WELL WRITTEN bits walking me through fundamentals, encouraging me, explaining.(Note: "well written" covers everything from "interesting" to "intelligent." The reader doesn't stumble over elementary grammar errors, lots of typos, etc.) I've only just discovered this lovely gold mine!

Cherie, U.S.



I have just come across your site and it's great...thank you so much for the time it must take you to compile the data and information. I have no accountancy or book keeping knowledge and am currently trying to learn QuickBooks via YouTube. (lol) There must be an easier way as I don't have the time or finances, what with starting a new business, to attend a course at college or similar.

Debbie, Vancouver, BC Canada



As a novice at the bookkeeping game, this site has become my go to site for research. Thank you for the great resource. I do my data entry one or twice a year (very low volume) and I find I need retraining on Quickbooks for things like depreciation/CCA.

Den, St. Albert, AB Canada



A More Than FANTASTIC site! So often I've thought about putting something together like your site, but didn't have the time. Googling information about Supplies or Tools over under $500.00 was the most useful Google search I've ever done because of discovering your site. Way to go and THANKS VERY MUCH. PS.... Also loved it that you put the Tax chart for GST HST back to 1997; I spent hours trying to get this information from the CRA website. I've not had time to look at your whole site, but I will be refering to it often I'm sure and will mention anything I think is missing, should I not discover information as I might be looking for it. Thanks, Again

Leona, Sicamous, BC Canada



Thank you for your comprehensive reply to my question. I really appreciate the time you took to explain it to me.

Connie, Canada



This is an absolutely awesome site! I am not lying. I went to Chapters to try to find something just like this and they did not have what I was looking for - which your site does ... which is good definitions and explanations. I am going to book mark this page if that's okay. ... Great job and thank you. I will definitely use this resource.

PK Lethbridge, Alberta



My biggest problem in doing my books is keeping debits & credits straight in liability and equity accounts. I really liked the cheat sheet. (I think that will help me keep the debits and credits straight.)

Lisa, Williston, USA



Lake you're awesome in every way. I have had some insight about how to properly classify some accounts.

Karim, Calgary, Alberta



Thank you so much for this website. I am interviewing for my first bookkeeping position in over 10 years--and my first in Canada. I have AAS degrees in Accounting and Business Admin from the US but have never worked in "my field" since immigrating in 2000. Your website makes me feel more confident I can actually do the job I am interviewing for. So far, I have been refreshing my knowledge and preparing for a job interview. I've bookmarked the site for WHEN I get the job!

Robin, Toronto, ON



I love your website. Just love it.

Carolann
CPB Bookkeeping, Inc.
"The Organizer"
Lake Worth, FL



I posted a question on Accumulated Surplus and you asked me to comment on your comments. I really appreciated reading what you posted and it did help. Especially the part of talking to the accountant. That really makes sense. I find more and more that I interact with the accountants to keep on learning. Love Love Love your website. Just discovered it about 3 weeks ago and have been on it lots since then.

Jan
Red Deer, Alberta



Wow. I'm so thankful to have stumbled across your site, with the assistance of Google. :) I love your style of writing, your approach, and your message. Thank you for your time and efforts. In a nutshell, your light humor and simple approach is refreshing and uplifting.

Kathy, Hillsdale, United States



Your site is great by the way. I just came across it.

Trish, Canada



Thanks for responding so quickly ... I really appreciate all the forum help ... I do Love the forum and have looked through other questions on it and feel it will greatly help in the future. Your site is fantastic and I will recommend it to anyone asking about bookkeeping help.

Cindy, Calgary, Canada



It (your site) is very helpful and thank you for your tips and advice. I am so glad I found your site.

Lee, Calgary, Alberta



Thank you so much for your hard work on your site ... I find I learn quicker and easier with you than I did with courses. Your site has helped my knowledge, learning new things and with the explanation of terms/items. Keep up the good "BookWORK"!

Naomi, Balance Your Books, Squamish, B.C.



This website has been very helpful. It's been too many years since school and I'm a bit rusty.

Sue, Medicine Hat, Alberta



I just found this site tonight. It's going to help me a lot as I learn how to use my Quickbooks more fully (I've only used it for payroll). Don't ask me how I've managed to keep the books this long -5 years- without knowing much more than how to balance a checkbook. I'm getting some help from a professional now, but your site will keep my pro costs down. Thank you. I will definitely donate once I begin to use it with my QuickBooks. It's [your site] easier to understand than Help in QuickBooks. QuickBooks assumes I know bookkeeping concepts. It [your site] appears to be very thorough, though I've only scratched the surface of what I can learn. I took an online bookkeeping class a couple of years ago, but this site has direct application to quickbooks and it's a searchable site!

Ruth, Dos Palos, CA USA



Thank you for providing valuable information regarding home business taxes on this website.

U.C., Toronto, Canada



I started my own bookkeeping business two years ago and enjoy your site. I literally grab my cup of coffee and look around for hours. :D It's a wonderful site with loads of information and I'm all about learning from my peers who might have the answers to some of the questions I may have. Keep up the good work. :)

Tania, TaniasBookkeeping.org
Taking the worry away
Belledune, New Brunswick



BTW, did you say Bookkeeping? Cuz I fell asleep... just kidding!

Dr. Julia
www.advice-with-dr-julia.com

(I love her humour!)



Absolutely a great site! I have often dreamed of having a similar site but figured I might have to wait until I retire to get the time. I have bookmarked this site and will return again.

C.H.
Alwyn Enterprises
Scarborough , Ontario



You have a wonderful website. Thank you so much for letting me know you have one now. [It] is really well done and very, very informative. Also really charming.

R.P.
Reliable Recordkeeping
Toronto, Ontario



I'm enjoying reading your blog! Thought I'd drop you a quick note of encouragement.

Loralee, Red2Black.ca
QuickBooks "one
on one" coaching
Edmonton, Alberta



This is a marvelous site and one that I would like to use as the basis for training bookkeepers. I am a CPA here in the states and am in the process of building a what will hopefully become a substantial bookkeeping business (not a dark wood & gold lettered CPA firm). I want to serve the small business owner with the day to day service they need. You have obviously put in an enormous amount of time and effort here (there is no doubt there) and provide a wealth of fantastic information.

R. Keith Pierce, CPA, P.A.
I'll Sweat The Small Stuff For You - JaxTaxPro.com
Jacksonville, Florida