• GST74 - Election and revocation of an election to use the Quick method of Accounting

Quick method of accounting

Generally, you can use the quick method if the total annual revenue (including the GST/HST) from your worldwide taxable supplies (including zero-rated supplies) and those of your associates is not more than $400,000 for either the period consisting of the first four consecutive fiscal quarters out of your last five fiscal quarters, or the period consisting of the last four fiscal quarters out of your last five fiscal quarters. When you calculate your annual worldwide taxable supplies, exclude revenues from supplies of financial services and sales of real property, capital assets, goodwill from the sale of a business, and, before January 1, 2017, eligible capital property.

If you previously elected to use the quick method and have 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.

When to 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 are a new registrant filing your first return for a reporting period that is not a full fiscal year, you have to make your election by the due date of the return.

If you file monthly or quarterly GST/HST returns, you have to make your election by the due date of the return for the reporting period in which you begin using the quick method.

Duration of this election

Generally, the election stays in effect unless either:

• the total annual revenue (including the GST/HST) from your annual worldwide taxable supplies (including zero-rated supplies), and those of your associates, is more than $400,000

• you become a person that cannot use the quick method because of the type of business you carry on

If your election is no longer in effect, you have to start accounting for the GST/HST using the regular method to calculate your net tax. For more information, see Guide RC4058, Quick Method of Accounting for GST/HST.

When and how to revoke the election

You can revoke the election only after your quick method election has been in effect for at least one year, unless the business no longer meets the eligibility criteria. Once the election is revoked, you must wait at least one year before you can elect to use the quick method again.

You have to revoke the election by the due date of the GST/HST return for the last reporting period in which you wish to use the quick method.

Where to send this form

Send this form to your tax services office. To get the address of your tax centre, go to canada.ca/cra-offices or call 1-800-959-5525.

If you need help

For more information, go to canada.ca/gst-hst or call 1-800-959-5525.