If you are a small business in Canada and are already using the “Quick Method” of accounting for your GST remittances, then stop here. You’re smarter than I was.
Sometimes one stumbles upon a quarter on the sidewalk. Today, was kind of like that. While browsing for a CRA payroll form, I ended up meandering to the information page about the “Quick Method” option for GST. I’ve noticed the term on the GST forms… and now I wish I had researched it earlier.
In short, if your business qualifies for the Quick Method, you don’t need to remit your GST collected less GST paid. Instead, after registering, you can remit an 3.6% as laid out in this table for 2008 (when GST goes to 5%). You get to pocket the difference. As a bonus, you skip out on a lot of annoying things like adding up all those ITCs, and calculating ITCs for stuff bought from the US and other non-Canadian sources.
|Permanent establishment in a non-participating province||Permanent establishment in a
|Current rate||Reduced rate||Current rate||Reduced rate|
|Supplies made in a
|Supplies made in a participating province||11%||10.5%||9.4%||8.8%|
If you’re a low overhead operation, you’re probably going to save a few bucks. Look into it. You do have to pre-register… so, with the new calendar year around the corner, it’s a pretty good time to consider it.