11QS ZZ 49498183
General Information
FP-2074-V (2018-01)
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Definitions
Business engaged in the resale of goods
A business that is operated by a person registered for the GST/HST or QST and
that acquires tangible personal property (“corporeal movable property” under the
QST system), other than basic groceries and property on which the business did
not have to pay tax, for the purpose of reselling it. The cost of the property must
represent at least 40% of the total annual taxable supplies made in Canada (for
GST/HST purposes) or in Québec (for QST purposes), excluding supplies of financial
services and sales of real property (“immovable property” under the QST system),
capital assets and goodwill.
Business engaged in the provision of services
A business that is operated by a person registered for the GST/HST or QST and that
does not qualify as being engaged in the resale of goods.
Permanent establishment
A permanent establishment of a particular person is either:
• a fixed place of business through which the particular person makes supplies,
including a place of management, a branch, an office, a factory or workshop,
as well as a mine, an oil or gas well, timberland, a quarry, or any other place
where natural resources are extracted; or
• a fixed place of business where another person (other than a broker, a general
commission agent or other independent agent acting in the ordinary course
of business) is acting in Canada, for GST/HST purposes, or in Québec, for QST
purposes, on behalf of the particular person and through whom the particular
person makes supplies in the ordinary course of business.
Participating province
A province that has signed an agreement respecting the HST. A list of the participating
provinces is available on Revenu Québec's website at at revenuquebec.ca. Québec
is not a participating province.
Non-participating province
A province, a territory or any other space in Canada that is outside the participating
provinces. Québec is a non-participating province.
Total annual supplies
Under the GST/HST system, for a person to use the Quick Method of Accounting
for a reporting period, its total worldwide taxable supplies (including zero-rated
supplies) and those of its associates for any four consecutive fiscal quarters in the
five most recent fiscal quarters must not exceed $400,000 (GST/HST and zero-rated
supplies included). Do not take into account exempt supplies, supplies of financial
services or sales of real property (called “immovable property” under the QST
system), capital assets and goodwill.
Under the QST system, the limit on total annual taxable supplies, which includes
only the QST and zero-rated supplies, is $418,952.
Application
A person can begin using the Quick Method of Accounting on the effective date
of the election entered on this form. The effective date must be the first day of a
GST/ HST and QST reporting period. When using the Quick Method of Accounting, the
person must collect GST/HST and QST in the usual way, but the GST/HST and QST
amounts remitted to Revenu Québec must be calculated using the Quick Method
of Accounting rate that applies to the type of business.
If a person elects to use the Quick Method of Accounting, that method must be
used for at least one year. The election applies to all of the person's branches and
divisions (even if they file separate returns). The election remains in effect for as
long as the person meets the eligibility requirements or until the election is revoked.
The person must inform Revenu Québec if it ceases to be eligible to use the Quick
Method of Accounting.
Filing deadline
A person with a monthly or quarterly reporting period must file this form no later
than the filing deadline for the reporting period during which it began using the
Quick Method of Accounting.
A person with an annual reporting period must file this form no later than the first
day of the second quarter of the fiscal period for the election to be effective for
that period.
The GST/HST and QST reporting periods must be the same.
Remittance rates
Under the GST/HST system, there are several different remittance rates for the Quick
Method of Accounting. A person may have to use more than one rate if it makes
taxable supplies in both participating and non-participating provinces. In addition,
persons that make taxable supplies in participating provinces may have to apply
different rates to their supplies, depending on location and on whether they must
collect GST or HST. For a complete list of remittance rates, see canada.ca/taxes.
The special 90% rule (for the GST/HST only)
The special 90% rule enables a person to use a single remittance rate. If 90% or
more of the person's taxable supplies during a particular reporting period are made
through a permanent establishment located in a non-participating province, the
person can treat all of the supplies for that reporting period as having been made
in that non-participating province. Similarly, if 90% or more of the person's taxable
supplies are made through a permanent establishment located in a participating
province, the person can treat all of its taxable supplies as having been made in
that participating province.
Remittance rates for a non-participating province
The table below shows the remittance rates for a person with a permanent
establishment in Québec (which is a non-participating province) that makes taxable
supplies in Québec or in another non-participating province. The QST remittance
rates apply to supplies made in Québec.
Rate
Type of business GST QST
Business engaged in the resale of goods in a
non-participating province
1.8% 3.4%
Business engaged in the provision of services in a
non-participating province
3.6% 6.6%
Special rate reduction
Under the GST/HST system, a person can apply a rate reduction of 1% for each
fiscal year to the first $30,000 (GST/HST included) of its taxable supplies, provided
the election to use the Quick Method of Accounting was in effect at the beginning
of the fiscal year in question or on the date on which the GST/HST registration
came into effect. The 1% rate reduction applies under the QST system, on the same
conditions, to the first $31,421 of taxable supplies (QST included).
If a person files monthly or quarterly returns, the 1% rate reduction applies to the
first report ing period and subsequent reporting periods in the fiscal year, until the
fiscal year ends or until the amount of taxable supplies made reaches $30,000
(GST/ HST included) or $31,421 (QST included). If a person files annual returns, the
1% reduction applies to the first $30,000 (GST/HST included) or the first $31,421
(QST included) of taxable supplies made during the fiscal year.
If the amount of supplies in any fiscal year is less than $30,000 (GST/HST included)
or $31,421 (QST included), the unused portion of the rate reduction cannot be
carried forward.
To claim the 1% rate reduction for a reporting period, enter the amount claimed on
line 107 of the GST/HST return and on line 207 of the QST return.
Special cases
