Quick Method
by Jo
If I put on line 101 Sales and Other Revenue $4905, I should pay $402.00 with my rate for the Quick Method being 8.2%. But I was informed it was wrong. Please help. I live in B. C.  Hi Jo, I want to begin by saying I have never used the Quick Method when doing books. I find it is just easier to track the tax. That being said, here is my understanding of how the accounting method works. As you know, the Quick Method of accounting for GST/HST requires you collect the applicable sales tax just as you would if you were using the regular method of accounting for GST/HST. Instead of claiming your input tax credits, you remit using Quick Method rates set by CRA. Under the new supply rules (effective May 1, 2010), to determine which rate you use, you must track your sales by the sales tax rate collected. There is a special 90% rule you need to make yourself familiar with to help you determine how you calculate your amount owing. Some items are not eligible for the Quick Method … capital assets being one of them. For these items you must claim the input tax credit. You also need to know that there are two class groups for the Quick Method of accounting; services and goods for resale. You need to select the correct group. As you live in BC, you are classified as a participating province. You didn't say who informed you that your rate selection and/or calculation was wrong, so I'm not sure what the issue is regarding your return ... but here is how I understand the calculation required. If your business involves providing a service, and 90% or more of your customers are in BC, your Quick Method rate would be 8.2% after April 30, 2010 and 3.6% before May 1, 2010. If your business involves purchasing goods for resale, and 90% or more of your customers are in BC, your Quick Method rate would be 4.1% after April 30, 2010 and 1.8% before May 1, 2010. When filing, don't forget to claim your 1% credit on your first $30,000 of sales on line 107. Hope this helps. Note: I would like to remind you there is a difference between information and advice. The information provided in this posting or on this site should not be construed as advice. Please make yourself familiar with my disclaimer.
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