Quick method for GST/QST

The Quick Method is a simplified way to calculate the sales taxes (GST and QST) to be remitted to the government. Instead of tracking the tax paid on each expense, the business charges sales tax as usual and then remits a reduced percentage of its sales. This method is reserved for eligible small businesses that fall below a sales threshold.

At a glance

You charge your customers the GST (5%) and QST (9.975%) as usual
You only pay a reduced tax rate on your sales, without claiming tax refunds on your everyday expenses (known as ITC and ITR)
Available only to businesses with sales below the threshold (approximately $400,000 per year)
This option is available through Revenu Québec; it’s especially beneficial for services with low expenses
Certain professions are excluded, including accountants, lawyers, and financial advisors

Why it matters

If you provide services with few taxable expenses (consulting, freelance work, professional services), the Quick Method can simplify your life and leave you with more money in your pocket: the difference between the taxes you collect and the reduced amount you pay keeps you. Example: A consultant who bills a lot but buys few supplies often keeps a few hundred dollars a year this way. Specifically, on $90,000 in sales, she collects $4,500 in GST and $8,977 in QST, but remits only a reduced percentage based on her line of work: the difference she keeps can exceed $1,000 per year, in addition to the 1% credit granted on her first $30,000 in sales. Conversely, if you make a lot of purchases (materials, equipment, subcontracting), the standard itemized method often pays out more. This choice depends on your status as a small supplier and, if you sell outside of Quebec, with your invoicing of HST ; an accurate calculation also protects you in the event of a tax audit. Rates and eligibility requirements are detailed in the guide RC4058 from the Canada Revenue Agency. The right choice is calculated using your actual numbers and is adjusted as your expenses change. Bankeo connects you for free with a vetted accountant or CPA to do this calculation, and we’re here to support you every step of the way.

Frequently asked questions

How does the quick method actually work?

You charge your customers GST and QST at the standard rates, but you only remit a small percentage of your sales (including taxes) to the government, based on your type of business (the rate differs between services and the resale of goods). In exchange, you forgo claiming tax credits on your small, day-to-day expenses, but you keep the credits on large equipment purchases.

Who can choose the quick method?

Small businesses registered for the GST/QST whose taxable sales do not exceed the threshold, which is approximately $400,000 per year (including taxes). Certain professions are excluded, including accountants, lawyers, and financial advisors. The election is filed with Revenu Québec and remains in effect for at least one year.

Is the quick method worth it for me?

It all depends on the amount of your taxable expenses: the less you spend, the more advantageous the Quick Method is. It takes just a few minutes to compare using your financial statements (the summary of your income and expenses). Our GST/QST calculator gives you an initial overview, and Bankeo connects you, for free, with a vetted accountant or CPA to confirm the best choice, and we’re here to support you every step of the way.