GST/HST, Regular Method, Quick Method, Corporation, Input Tax Credits
Built to Thrive Explainer
Read time: 3-4 minutes
Where this fits: This explainer supports the Tax & Financial Discipline guide path.
Updated on: April 24, 2026
Once a corporation is registered for GST/HST, it needs a method for calculating what gets reported and remitted. For many owner-operated corporations, the two methods that come up most often are the Regular Method and the Quick Method.
They are not the same thing. The Regular Method tracks GST/HST collected from customers and subtracts eligible input tax credits. The Quick Method uses a simplified remittance calculation, but it also changes how most input tax credits are handled.
The practical question is not which method sounds easier. The question is which method fits the corporation’s activity, expenses, eligibility, and record-keeping needs.
The Regular Method
Under the Regular Method, the corporation tracks both sides of the GST/HST story. That means:
- GST/HST charged on taxable sales
- GST/HST collected from customers
- GST/HST paid on eligible business expenses
- input tax credits, if supported
- net GST/HST owing or refundable
This method is more detailed, but it is also more direct. The corporation calculates GST/HST collected, subtracts eligible input tax credits, and reports the net result.
CRA describes input tax credits as a way for GST/HST registrants to recover GST/HST paid or payable on purchases and expenses related to commercial activities. To calculate ITCs using the regular method, the registrant adds up GST/HST paid or payable on eligible purchases and expenses and applies the eligible claim amount.
For corporations with meaningful GST/HST on expenses, the Regular Method can be useful because eligible ITCs are tracked directly.
The Quick Method
The Quick Method is different.
- Under the Quick Method, the corporation still charges GST/HST to customers at the normal applicable rate.
- But instead of subtracting most actual ITCs from GST/HST collected, the corporation remits GST/HST using a prescribed quick method remittance rate.
- CRA explains that when using the Quick Method, a registrant still charges GST/HST at the applicable rate but remits only a portion of that tax using the applicable remittance rate.
This can reduce paperwork because the corporation generally does not claim ITCs on most operating expenses. CRA states that under the Quick Method, ITCs generally cannot be claimed for operating expenses because the portion of tax kept under the method is intended to account for the approximate value of ITCs that otherwise would have been claimed.
However, that does not mean records no longer matter. The corporation still needs to keep books and records for business purchases and supplies. CRA notes that businesses using the Quick Method still have to keep books and records related to business purchases and supplies for six years from the end of the year to which they relate.
Eligibility matters
The Quick Method is not available to every registrant.
CRA says the Quick Method election generally stays in effect as long as:
- Total annual revenue, including GST/HST, from worldwide taxable supplies, including zero-rated supplies, of the registrant and its associates does not exceed $400,000, subject to exceptions.
- CRA also notes that certain supplies are excluded from that revenue calculation, such as supplies of financial services and sales of real property, capital assets, and goodwill from the sale of a business.
The election also has timing rules. CRA indicates that the Quick Method effective date must be the first day of a GST/HST reporting period, and the election can be made through CRA online services or Form GST74.
That means a corporation should not simply start using the Quick Method informally. Eligibility, timing, election, business type, reporting period, and professional advice all matter.
Who is most likely to consider the Quick Method?
The Quick Method is most often worth reviewing for small service-based businesses with relatively low GST/HST-bearing expenses. That may include:
- consultants,
- IT contractors,
- project managers,
- designers,
- coaches,
- trainers,
- marketing service providers,
- and other owner-operated service businesses where most revenue comes from time, expertise, or professional service delivery rather than reselling goods or buying large amounts of materials.
The reason is practical. If the business does not pay much GST/HST on expenses, it may not be giving up many input tax credits by using the Quick Method. In that situation, the simplified remittance calculation may be worth comparing against the Regular Method.
The Quick Method is usually less attractive where the business has significant GST/HST-bearing expenses, inventory, materials, subcontractors, equipment purchases, or other costs that generate meaningful input tax credits.
It is also not available to every business. Some business types are excluded, including bookkeeping, financial consulting, tax consulting, tax return preparation, legal, accounting, and actuarial services. Eligibility, election timing, revenue limits, business type, and method choice should be confirmed before filing.
Why the methods produce different results
The Regular Method and Quick Method can produce different outcomes because they treat expense-side GST/HST differently.
- Under the Regular Method, the corporation separately tracks eligible ITCs.
- Under the Quick Method, the corporation generally uses the remittance rate instead of claiming most operating-expense ITCs separately.
This means the better method may depend on the corporation’s expense pattern. A corporation with low taxable expenses may find the Quick Method simpler and potentially favourable. A corporation with significant GST/HST on expenses may need to compare carefully because giving up most operating-expense ITCs could matter.
The Quick Method is not automatically better. The Regular Method is not automatically worse. The comparison depends on the corporation’s facts.
How this appears in the workbook
In the corporation workbook, this comparison should appear in the GST/HST Tracking & Reconciliation area. That section can help show:
- GST/HST collected
- GST/HST paid on eligible expenses
- Regular Method reference amount
- Quick Method planning comparison, if applicable
- estimated GST/HST position
- amounts that need accountant or filing review
The workbook should be treated as a planning and review tool. It can help the corporation see the difference between methods, but it does not make the election, confirm eligibility, or replace CRA filing.
What to review before choosing
Before choosing or continuing a method, the corporation should review:
- whether it is eligible for the Quick Method
- whether the election has been made properly
- the corporation’s reporting period
- taxable sales and associated business revenue
- how much GST/HST is paid on expenses
- whether expenses include large capital purchases
- whether the business type is excluded
- whether the method still makes sense this year
- whether the accountant agrees with the approach
This should be reviewed before filing decisions are made, not after the return is already due.
A simple way to think about it
- The Regular Method is more direct: GST/HST collected minus eligible ITCs equals net GST/HST.
- The Quick Method is more simplified: GST/HST is charged normally, but remitted using a prescribed rate, with most operating-expense ITCs not claimed separately.
The decision is not only about simplicity. It is about whether the method gives the corporation a clear, supportable, and appropriate GST/HST filing approach.
Educational note: This explainer is educational only. It is not legal, tax, accounting, or filing advice. GST/HST method choice depends on eligibility, business type, revenue, expenses, reporting period, CRA election status, and specific facts. Confirm the method with a qualified accountant or tax advisor before filing.