Who Can Use the Quick Method of Accounting?
Small businesses can use the Quick Method of Accounting if their total annual taxable sales worldwide, including zero-rated sales and sales made by associates, for any four consecutive fiscal quarters included in the five most recent quarters do not exceed:
- $400,000 (GST and HST included) under the GST system; and
- $418,952 (QST included) under the QST system.
Exempt sales, supplies of financial services and sales of real property, capital assets and goodwill must not be included in total annual taxable sales.
To estimate the amount of taxes you will have to remit if you use the Quick Method, use the Quick Method of Accounting: Tax Reduction Calculator.
The Quick Method cannot be used by the following entities:
- listed financial institutions;
- qualifying non-profit organizations;
- selected public service bodies;
- firms that provide legal, accounting or actuarial services;
- firms that provide fiscal or financial consulting services;
- firms that provide bookkeeping services or that specialize in the preparation of tax returns.