CRA GST Quick Method rates effective Jan 1 2008

This election could benefit your company by you not having to remit all of the GST you collect. This works best if your GST paid on purchases (input tax credits) are low. The Quick Method of accounting is a simple way to calculate the GST/HST you have to remit. It is generally available for small businesses with annual worldwide taxable sales or supplies (including GST/HST, zero-rated supplies, and associated business supplies) of no more than $200,000 in any four consecutive fiscal quarters over the last five fiscal quarters. The $200,000 limit does not include the following: supplies of financial services; sales of real property; sales of capital assets; and goodwill. If you use this method, you have to continue using it for at least a year. New remittance rate for use by small businesses that provide services is 3.6% for eligible supplies made in a non-participating province through a permanent establishment of the business in a non-participating province. Credit of 1% on the first $30,000 of eligible supplies In calculating your net tax using the Quick Method, you are entitled to a 1% credit on the first $30,000 of your eligible supplies (including GST/HST) on which you must collect 5% GST or 13% HST in each fiscal year.
For further details on the GST Quick method go to:http://www.cra-arc.gc.ca/E/pub/gp/rc4058/rc4058-e.html#P257_23031