GST "Quick" Method
Small businesses can find that complying with the GST is a fairly significant accounting burden. As some degree of compensation, businesses that have taxable "supplies" (as defined under the GST legislation - generally, taxable revenues) of $200,000 or less per fiscal year can avail themselves of the "Quick Method" option.
Under this option, the business charges and collects GST from its customers in the usual way (i.e., by charging 6% GST). However, they need remit to the Canada Revenue Agency a lesser amount, leaving the cash difference as taxable revenue to the business.
As of July 1st, 2006, the new “Quick” remittance rate is 4.3% on all supplies collected, including the GST, with a 1% credit on the first $30,000 of taxable revenue (i.e., $300). For example, if your total sales were $100,000 + $6,000 (GST), you would remit the following:$106,000 * 4.3% = $4,558 - $300 (1% credit on the first $30K) = $4,258.
This results in a 3.3% rate on the first $30,000 of revenue, and 4.3% on the balance up to $200,000 of revenue. In the example given, there would be a profit to the business (taxable for income tax purposes) of $1,742 ($6,000 - 4,258).