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HST – QUICK METHOD Posted on Sep 24, 2019

 

If you are registered for an HST and never heard of a QUICK METHOD you might be losing margin from your profit.

HST Quick method is available to small businesses to calculate the net tax. It is very beneficial for a business that have income (sales) from which they collect HST from customers but do not incur a lot of expenses from which they pay HST. In contrast to the traditional method where you have to remit to the government HST collected and claim back HST paid, with a quick method, you do not need to keep track of HST paid on expenses, so, bookkeeping is easier. And the best part is that instead of remitting to the government the full HST collected, you only remit portion of it. Leaving the other portion in your pocket. For a business that doesn't incur a lot of expenses the non remitted portion is usually much higher than HST paid on expenses and would have been claimed back under the traditional method.