What is the Quick Method of Calculating HST and can I use it?

CRA has provided a web site for that information. 

Quick Method of Calculating HST

Generally, as long as your sales are under $400,000 in a year, and providing you are not the type of service that is excluded from the calculations, it will benefit you if you are more of a service business, than a manufacturer, or retailer of taxable goods for resale. 

This is because you would not be able to claim input credits on your purchases of taxable goods for resale, and the calculation is based on your grossed up (tax included) sales.  

In Ontario, the rate is 8.8% of the taxable goods, less 1% on the first $30,000 in sales.  You must advise CRA that you are changing to that method within the first 2 periods of your new year, where you did not use the quick method of calculating your HST return.

Your Hollingsworth and Associates Team