GST Reporting by the Quick Method
by 4hire
(Kelowna BC)
The Quick Method isn't really quick.
If you are using the GST Quick Method for reporting on your tax it seems as though you add the tax and net revenue together and then do some kind of mathematical percentage (this is in BC and is a personal service biz) to show what tax to pay.
Is this correct and if so now that Apr 1 has come and gone what is the difference in this percentage from the 1st and 2nd quarters of 2013?
When you are recording your sales for your personal tax (T1 proprietorship) purposes do you use a net of the actual GST collected amount as revenue or do you take the amount reported for GST purposes which includes the tax collected?
Not sure I am seeing the benefit to the Quick Method and would love your comments. Seems like you end up paying more than doing the regular method utilizing your ITC's.
If you use the amount of revenue including tax collected as the revenue do you expense the GST you pay each quarter as an expense?
I do agree with you that the Quick Method for reporting GST/HST is NOT quick. The only quick thing about it is CRA gets paid funds held in trust quickly by business owners who don't keep up with their bookkeeping.
If you follow the link above, you will see there is a column under the rates for NPPs ... non participating provinces ... which is how BC is classified after returning to GST + PST on April 1, 2013.
I'm not a fan of the Quick Method ... and I don't use it. It is easier to just track the tax from a bookkeeping perspective. There is a forum post on how to record the Quick Method in QuickBooks that might be of interest to you.
If you follow the link for "funds held in trust", I chat about the biggest mistake small business owners make when first starting out.
P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.
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