Quick Method vs Regular Method for HST in Ontario: Which One Saves You More?

If you're registered for HST in Ontario, there are two common ways to calculate what you owe: the regular method and the quick method. The method you choose can affect cash flow and how much bookkeeping detail you need.

This post explains both in plain English so you can choose without guessing.

The regular method (simple)

Regular method is what most people think of:

• You charge HST on sales
• You track HST paid on eligible expenses (ITCs)
• You remit the difference

Formula:

Regular method works well when you have:

• significant expenses with HST (so ITCs matter)
• strong bookkeeping and receipt tracking
• businesses with materials/subcontractors (often)

The quick method (simple)

Quick method is different:

• You still charge HST on invoices
• But instead of tracking ITCs on most expenses, you remit a fixed % of your taxable sales
• Bookkeeping can be simpler

Quick method can work well when:

• your expenses are low
• you're more service-based
• you want simpler tracking

Important: eligibility and rates depend on your business type and revenue. Don't guess—confirm before switching.

Which one “saves more” (how to think about it)

It depends on your business model:

• If you have high expenses with lots of HST (materials, subcontractors, fuel, tools), the regular method often makes sense because ITCs reduce what you owe.
• If you have low expenses and mostly labour/service revenue, the quick method can sometimes reduce remittance and simplify bookkeeping.

The right answer comes from your numbers, not a generic rule.

The biggest mistake: choosing a method without clean books

If your bookkeeping is messy, you can't compare properly.

Before deciding, make sure:

• sales are recorded accurately
• expenses are categorized properly
• bank/credit cards are reconciled
• receipts are saved

Otherwise you're choosing blind.

Quick checklist: should you consider the quick method?

You may want to review quick method if:

• your business is mostly services
• you don't have many HST-heavy expenses
• you want simpler HST tracking
• you're consistent with invoicing and deposits

You may want to stick with regular method if:

• you buy a lot of materials
• you pay subcontractors
• you have significant fuel/vehicle costs
• you want to claim ITCs consistently

FAQs