The Quick Method of Accounting for Calculating GST and QST Remittances
The Quick Method is a simplified accounting method designed to help registrants calculate the GST and QST they must remit to Revenu Québec.
Under the Quick Method of Accounting, you collect GST and QST in the usual manner. However, you need not claim input tax credits (ITCs) and input tax refunds (ITRs) respecting your current operating expenses or purchases made in the course of your commercial activities, because the Quick Method of Accounting takes them into account.
For GST purposes, you need only multiply the total taxable supplies (including GST) by the applicable rate, and for QST purposes, simply multiply the total taxable supplies (including QST) by the applicable rate.
If applicable, you must then calculate the 1% rate reduction on the qualifying portion of your taxable supplies and deduct these partial amounts from the tax payable.
You must remit all of the amounts so calculated for each reporting period.
In calculating your total supplies, do not include:
- zero-rated supplies
- supplies of real property and capital property
- supplies made to Indians
You may use the Quick Method of Accounting regardless of whether you include the GST and QST in your sale prices or indicate the taxes separately from the price. Users of the Quick Method are still required to keep all supporting documents concerning their purchases and supplies.
If you make taxable supplies in participating provinces, the rates may vary depending on the location of your business and depending on whether you charged GST or HST on your taxable supplies (excluding zero-rated supplies). For more information, refer to the Canada Revenue Agency's guide Quick Method of Accounting for GST/HST (RC4058).
As a user of the Quick Method, you do not claim ITCs or ITRs in respect of most business expenses (such as heating costs, rent and telephone expenses). You may, however, claim ITCs and ITRs respecting acquisitions of land and property (such as a building, a vehicle or office furniture) that give entitlement to capital cost allowance (CCA) for income tax purposes. These ITCs and ITRs may be claimed in your GST and QST returns for the period during which the purchases were made.