GST74 - Election
and revocation of an election to use the quick method of
accounting
General Information
Who can make this election?
Generally, you can use the quick method if the total annual revenue from your worldwide taxable supplies (including GST/HST) and those of your associates in either the first four or the last four consecutive fiscal quarters in the last five fiscal quarters is no more than $200,000.
Certain businesses cannot use the quick method. For more information, see Guide RC4058, Quick Method of Accounting for GST/HST.
When can you make the election?
If you file annual GST/HST returns, you have to make the election by the first day of your second fiscal quarter.
If you file monthly or quarterly GST/HST returns, you have to make your election by the due date of the return in which you begin using the quick method.
You can start using the quick method on the effective date you indicate to us on this form. However, this date has to be the first day of a GST/HST reporting period.
If you previously elected to use the quick method and had revoked that election, you have to wait at least one year from the date the revocation became effective before you can elect to use the quick method again.
You must make this election before filing the GST/HST return for the year in which you want to use the quick method.
How do you elect to use the quick method?
To make this election, you can either complete and send this form to your tax services office (TSO) or use the "File an election" online service at www.cra.gc.ca/mybusinessaccount or at www.cra.gc.ca/representatives. For the address of your TSO, go to www.cra.gc.ca/tso or call 1-800-959-5525.
If you choose to elect using the "File an election" online service, do not send us this form.
How long does the election stay in effect?
Generally, the election stays in effect as long as the total annual revenue from your worldwide taxable supplies (including the GST/HST), and those of your associates, does not exceed $200,000, or until you become a person that cannot use the quick method because of the type of business you carry on.
If your election ceases to be in effect, you have to start accounting for the GST/HST using the regular method:
- at the beginning of your next fiscal year if you file annual returns and you exceed the $200,000 threshold in your current fiscal year;
- at the beginning of your second fiscal quarter of a fiscal year if you file monthly or quarterly returns, your election to use the quick method was in effect at the beginning of that year, and you exceeded the $200,000 threshold in your previous fiscal year; or
- at the beginning of your next fiscal quarter if you file monthly or quarterly returns, your election to use the quick method was not in effect at the beginning of the fiscal year, and you exceeded the $200,000 threshold in both the first four and the last four consecutive quarters of the previous five fiscal quarters.
When and how can you revoke the election?
You can revoke the election only after your quick method election has been in effect for at least one year.
To revoke this election, you can either complete and send this form to your tax services office (TSO) or use the "File an election" online service at www.cra.gc.ca/mybusinessaccount or at www.cra.gc.ca/representatives. For the address of your TSO, go to www.cra.gc.ca/tso or call 1-800-959-5525.
If you choose to revoke the election using the "File an election" online service, do not send us this form.
If you revoke the election, you have to wait at least one year before you can elect to use the quick method again.
Forms and publications
To get our forms and publications, go to www.cra.gc.ca/forms or call 1-800-959-2221.