HST for contractors, and the Quick Method.
HST looks simple until a deposit, a holdback or a supply-and-install job makes it complicated. The basics, plus one election that can quietly save you money.
The $30,000 line, and why many register sooner.
You have to register once taxable revenue crosses $30,000 in a rolling four quarters, then you charge the 13% Ontario rate. Plenty of contractors register earlier on purpose so they can claim input tax credits on tools, materials and equipment.
The timing questions that cause reassessments.
- HST timing on deposits, progress payments and holdbacks.
- Supply-and-install versus materials-only treatment.
- Claiming input tax credits properly so you are not leaving refunds on the table.
A flat remittance that often wins for labour-heavy trades.
The HST Quick Method lets eligible small businesses remit a lower flat percentage of sales instead of tracking HST on every input. For labour-heavy trades with modest input credits, it can leave real money in your pocket each year. It is not right for everyone. Equipment-heavy years with big input tax credits often favour the regular method. The answer is a short calculation against your actual numbers.
When do I have to register for HST?
Does the Quick Method save money?
Want the Quick Method math on your numbers?
Book a call and I will run it, and make sure your HST timing on holdbacks and progress billing is right.
General information for Ontario businesses, current at the time of writing. Not tax, legal or accounting advice. Confirm your situation with a professional. Steel City CFO can help.