GST/QST Quick Method

The quick method is a simplified way of calculating VAT payable to the government. Instead of tracking the tax paid on each expense, the business invoices its taxes normally and then remits a reduced percentage of its sales. It is only available to eligible small businesses below a sales threshold.

Brief

You charge VAT (5%) and VAT (9.975%) to your customers as usual.
You only remit a reduced rate on your sales, without claiming tax refunds on your current expenses (called ITC and IRT).
Reserved for companies below the sales cap (approximately $400,000 per year)
The choice is made with the tax authorities; especially advantageous for services with low expenses;

Why does this matter?

If you offer services with few taxable expenses (consulting, freelancing, professional services), the quick method can simplify things and leave you with more money: the difference between the taxes you collect and the reduced amount you pay is yours to keep. For example, a consultant who bills a lot but buys little equipment often keeps a few hundred dollars a year this way. Conversely, if you buy a lot (materials, equipment, subcontracting), the traditional detailed method often pays more. The right choice is calculated based on your actual figures and becomes clear when your expenses change. Bankeo will connect you with a verified accountant/CPA free of charge to perform this calculation, and we'll be there to support you every step of the way.

Frequently asked questions

The quick method, how does it actually work?

You charge your customers VAT at the standard rates, but you only remit a small percentage of your sales (including taxes) to the government, determined by your business type (the rate differs for services compared to product resale). In exchange, you forgo reclaiming taxes on your small, routine expenses, but you retain them on large equipment purchases.

Who can choose the fast method?

Small businesses registered for VAT whose taxable sales do not exceed the threshold of approximately $400,000 per year (including taxes) are eligible. Certain professions are excluded, including accountants, lawyers, and financial advisors. The election is made with the tax authorities and remains in effect for at least one year.

Is the fast method free for me?

It all depends on the amount of your taxable expenses: the less you spend, the more advantageous the quick method becomes. Comparing it to your financial statements (a summary of your income and expenses) takes just a few minutes. Our VAT calculator provides an initial overview, and Bankeo will connect you with a vetted accountant/CPA free of charge to confirm the best option. We'll also be there to support you every step of the way.