QUICK METHOD OF GST/HST TAX RULES-Can this Minimize Your Taxes?
If you have annual worldwide taxable supplies of $400,000 or less, including the GST/HST and zero-rated supplies, then you can file an election to use the QUICK METHOD for GST/HST for reporting periods after January 1, 2013. (provided you are not under the “exception” category: eg., legal or accounting businesses)
You must still invoice the 5% GST or your provincial HST rate (Ontario would be 13%). You do not need to track your GST/HST input tax credits for most purchases, except for real property sales and other exception categories, because you remit based on a set remittance tax rate. The remittance rate varies depending if you are a business that provides services OR a business that purchases goods for resale.
Click here for more tax information, and call Hendricks & Assoc., CPAs at 416-766-3941 to discuss your best options, which may minimize your tax remittance for GST/HST for those businesses that do not have a lot of GST/HST taxable purchases (eg., payroll, insurance costs, etc.; collecting 13% HST and remitting 8.8% HST). -