GST/HST Flat Rate Calculator Canada

Calculate your GST/HST payments under the Quick Method of Accounting instantly. Select your business type and see your GST/HST liability at a glance.

CALCULATOR DETAILS

CA$
%

Calculation Summary

GST/HST to Pay

CA$

0.00

To CRA

Amount You Keep

CA$

0.00

Retained Income

What is the GST/HST Quick Method of Accounting?

The GST/HST Quick Method of Accounting is a simplified method for calculating GST/HST designed specifically for small businesses with turnover under CA$150,000. Instead of calculating GST/HST on individual purchases and claiming back input GST/HST, eligible businesses pay a fixed percentage of their turnover directly to CRA. This percentage varies by business type, ranging from 4% for retail food businesses to 14.5% for professional services like accountancy and IT.

How the Quick Method of Accounting Works

  1. Calculate gross turnover: Add up all your sales including GST/HST for the quarter.
  2. Apply your flat rate: Multiply your gross turnover by your business-specific flat rate percentage.
  3. Pay CRA: The result is what you pay to CRA - no input tax recovery needed.
  4. Keep the difference: Any GST/HST you pay on supplies is yours to keep; you don't claim it back.

Who Can Use the Quick Method of Accounting?

The GST/HST Quick Method of Accounting is available to registered GST/HST businesses with annual turnover below CA$150,000. You must:

  • Be registered for GST/HST
  • Have turnover under CA$150,000 per year
  • Be a Canadian business or have a Canadian business establishment
  • Not be GST/HST exempt

Once you exceed CA$230,000 turnover, you must leave the scheme.

Flat Rate Percentages by Business Type

Business Type Flat Rate %
Accountancy 14.5%
Advertising 11%
Architect 14.5%
Retail Food 4%
Farming 6.5%
Printing 8.5%
General Building 9.5%
IT Consultancy 14.5%
Legal Services 14.5%
Hotel / Accommodation 10.5%

Advantages and Disadvantages

Advantages

  • Simpler accounting and bookkeeping
  • No need to track input GST/HST
  • Can be cheaper if costs are high
  • Easier to forecast GST/HST payments
  • Less complex tax returns

Disadvantages

  • Cannot reclaim input GST/HST
  • May be more expensive if costs are low
  • Limited to businesses under CA$150k turnover
  • Variation by business type

Frequently Asked Questions

The GST/HST Quick Method of Accounting is a simplified way to calculate GST/HST for small businesses with turnover under CA$150,000. Instead of calculating GST/HST on individual transactions, you pay a fixed percentage of your turnover to CRA. The percentage varies by business type from 4% (retail food) to 14.5% (accountancy, IT, legal).

Yes! New businesses can join the quick method of accounting immediately upon GST/HST registration, provided your turnover is below CA$150,000. In fact, if you're in your first year of registration, you can apply for a 2% discount on your flat rate percentage, which can make the scheme even more attractive.

You must leave the quick method of accounting if your turnover exceeds CA$230,000. The scheme is designed for small businesses, and at this level, standard GST/HST accounting is more appropriate. However, you can voluntarily leave the scheme at any time if standard rating becomes more beneficial.

No, you cannot reclaim input GST/HST on most supplies while using the quick method of accounting. This is one of the key differences from standard GST/HST accounting. However, you can still reclaim GST/HST on capital purchases above CA$2,000 (or CA$500 if purchased before 1 April 2022). Any GST/HST you pay on supplies becomes a business cost.

There are 44+ business categories covered by the quick method of accounting, including everything from accountancy to waste management. If your business type doesn't have a specific rate listed, there's usually a catch-all category like "Other" that applies. Use our calculator above to find your exact rate, or contact CRA for clarification.

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