CRA GST Quick Method

This election could benefit your company by you not having to remit all of the GST you collect. This works best if your GST paid on purchases (input tax credits) are low.
The Quick Method of accounting is a simple way to calculate the GST/HST you have to remit. It is generally available for small businesses with annual worldwide taxable sales or supplies (including GST/HST, zero-rated supplies, and associated business supplies) of no more than $200,000 in any four consecutive fiscal quarters over the last five fiscal quarters. The $200,000 limit does not include the following: supplies of financial services; sales of real property; sales of capital assets; and goodwill.

If you use this method, you have to continue using it for at least a year.

New remittance rate for use by small businesses that provide services is 4.3%
for eligible supplies made in a non-participating province through a permanent establishment of the business in a non-participating province.

Credit of 1% on the first $30,000 of eligible supplies
In calculating your net tax using the Quick Method, you are entitled to a 1% credit on the first $30,000 of your eligible supplies (including GST/HST) on which you must collect 6% GST or 14% HST in each fiscal year.

Example:
Qwik Dry Cleaners' services are all performed in Calgary, Alberta, where its permanent establishment is located. It used the Quick Method in 2005 and used the 5% remittance rate in effect at that time. Now it has to determine if it can continue to use the Quick Method in 2006.
Qwik Dry's annual worldwide taxable sales (including GST) were not more than $200,000 in 2005. Therefore, Qwik Dry can continue to use the Quick Method. Qwik Dry's new remittance rate when filing its GST/HST return for the calendar third quarter of 2006 is now 4.3%. This new rate has been in effect since July 1, 2006.

Example:
Quick Method calculation for Qwik Dry Cleaners Calgary, Alberta
Calculation of GST remittance in third quarter of 2006(4.3% remittance rate)
Total eligible sales for the third quarter (including GST) ..................... $22,000

Multiply the total eligible sales by the
remittance rate ($22,000 × 4.3%) .................... $946

Deduct 1% for the first $30,000
of eligible sales ($22,000 × 1%) ..................... $(220)

Third quarter remittance ..................... $726

For further details on the GST Quick method go to:
http://www.cra-c.gc.ca/E/pub/gp/rc4058/rc4058-e.html