Applicable Rates

The Quick Method of Accounting rates apply only to supplies made in the normal course of your commercial activities. For other transactions, such as the sale of land or of used equipment giving entitlement to CCA, you must remit the full amount of GST and QST you collected or were required to collect.

3.6% and 6.6% rates

The general rates for businesses that supply mostly services are 3.6% for the GST and 6.6% for the QST. These rates apply to businesses such as taxi companies, dry cleaners, delivery services, auto repair shops, fast food outlets and travel agencies. Small manufacturers, caterers, photographers and painting contractors can also use these rates.

Example of how to calculate the tax amounts payable

Last year, a dry cleaner had total annual taxable supplies worldwide of less than $400,000 (including GST) and $418,952 (including QST). This year, the business can elect to use the Quick Method of Accounting and use the 3.6% rate for the GST and the 6.6% rate for the QST to calculate the tax amounts to be remitted each quarter.

Taxable supplies for the quarter (including GST)$21,000.00
Taxable supplies for the quarter (including QST)
Applicable ratesx3.6%x6.6%
Tax amounts to remit$756.00$1,451.67

1.8% and 3.4% rates

The applicable rates are 1.8% for the GST and 3.4% for the QST in the case of retailers and wholesalers that purchase goods intended for sale, such as

  • grocers
  • booksellers
  • tobacco vendors
  • owners of convenience stores, boutiques and service stations

However, the property purchased for resale or for use in other property intended for sale (other than basic groceries and property on which you were not required to pay the taxes at the time of purchase) must represent at least 40% of your total annual taxable supplies.

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