Form GST74 is the CRA election or revocation for the GST/HST Quick Method of Accounting. An eligible registrant can also make the election using CRA online services. The election changes how net tax is calculated; it does not replace registration or change the tax rate charged to a customer. CRA: GST74, CRA: Quick Method guide
Check eligibility before electing
The regular Quick Method requires an eligible business type and a permanent establishment in Canada. One of the first or last four consecutive fiscal quarters in the preceding five must generally have worldwide taxable revenues, including GST/HST and relevant associated-person revenues, of $400,000 or less; CRA lists exclusions and special rules for new businesses. Certain accounting, bookkeeping, tax and legal services, listed financial institutions and some public bodies are excluded. CRA: eligibility
Choose the effective date and deadline
The election must take effect on the first day of a GST/HST reporting period. Filing deadlines depend on your reporting frequency:
| Return frequency | Election deadline |
|---|---|
| Monthly or quarterly | The due date of the return for the period in which you begin using the method. |
| Annual | The first day of the second fiscal quarter. For a new registrant’s first return covering less than a full fiscal year, the election is due by that return’s due date. |
For example, an eligible quarterly filer beginning on April 1 chooses April 1 as the effective date and files the election by the due date of the April–June return. Check the actual period and any holiday adjustment. CRA: when to elect
Submit the election
- Confirm your RT account, eligibility, reporting period, intended effective date and election deadline.
- Use the CRA election service in My Business Account or Represent a Client, or obtain the current fillable or printable GST74 from CRA.
- Complete the election details and follow the form’s submission instructions. Retain the submitted form or online confirmation with your records. CRA: GST74 form
GST74 is different from GST70, which concerns an election to change the GST/HST fiscal year. Choosing a fiscal year does not itself elect the Quick Method. CRA: GST70 account guidance
After electing, and how to stop
Continue charging the applicable GST/HST on taxable supplies. Calculate eligible remittances using the rate appropriate to the business, the place of supply and permanent establishment; some supplies are accounted for separately. Most ordinary operating-expense ITCs are unavailable under the method, while certain capital-property and other ITCs can remain eligible. Keep the records supporting the return. CRA: Quick Method rates and ITCs
A voluntary revocation is normally available only after the election has been in effect for at least one year. File the revocation by the due date of the last return for which you want to use the method. After revocation, wait at least one year from its effective date before electing again. Separate rules determine when an ineligible business must stop using the method. CRA: revocation
Revenu Québec generally administers GST/HST for businesses physically located in Quebec, subject to exceptions. Where it administers the account, its election guidance uses Form FP-2074-V for the Quick Method of Accounting. Revenu Québec: election CRA: Quebec