Quick Method Hst Calculator 2018 Ontario

This guide explains how to calculate the Harmonized Sales Tax (HST) in Ontario using the Quick Method for 2018. The Ontario HST replaced the previous PST and GST system, creating a single sales tax rate. This calculator provides a simple way to determine your HST liability based on your taxable sales.

What is HST in Ontario?

The Harmonized Sales Tax (HST) is a single sales tax rate that replaced Ontario's previous Goods and Services Tax (GST) and Provincial Sales Tax (PST) system. The HST combines both taxes into one, simplifying the tax collection process for businesses and the payment process for consumers.

In 2018, the HST rate in Ontario was 13%. This rate applies to most taxable supplies of goods and services. The HST is charged on the selling price of taxable goods and services, but not on the price of basic food and prescription drugs.

Note: The HST rate may change over time. Always verify the current rate with the Canada Revenue Agency (CRA) or the Ontario Ministry of Finance before making tax calculations.

The Quick Method for HST Calculation

The Quick Method is a simplified approach to calculating HST that is commonly used by small businesses. This method involves calculating the HST due on your taxable sales by multiplying your total taxable sales by the HST rate.

HST Due = Total Taxable Sales × HST Rate

Where:

Total Taxable Sales = Sum of all taxable sales during the period
HST Rate = Current HST rate (13% in 2018)

This method is quick and easy to use, but it does not account for any HST that may have been paid on inputs or capital expenditures. For more accurate HST calculations, businesses may need to use the Detailed Method.

How to Use This Calculator

Our HST calculator makes it easy to determine your HST liability using the Quick Method. Simply enter your total taxable sales for the period and the calculator will automatically calculate your HST due.

Enter your total taxable sales in the "Taxable Sales" field.
Click the "Calculate" button to compute your HST due.
Review the result and use the information to prepare your HST return.

The calculator also provides a breakdown of the calculation and includes a chart to visualize your HST liability.

Worked Example

Let's walk through an example to demonstrate how to use the Quick Method for HST calculation.

Suppose a business in Ontario had total taxable sales of $50,000 during the 2018 tax year. The HST rate in Ontario for 2018 was 13%.

HST Due = $50,000 × 13% = $6,500

In this example, the business would owe $6,500 in HST for the year. This amount would need to be remitted to the CRA along with the business's HST return.

Frequently Asked Questions

What is the HST rate in Ontario for 2018?

The HST rate in Ontario for 2018 was 13%. This rate applied to most taxable supplies of goods and services.

What is the Quick Method for HST calculation?

The Quick Method is a simplified approach to calculating HST that involves multiplying your total taxable sales by the HST rate. This method is commonly used by small businesses.

What is the difference between the Quick Method and the Detailed Method for HST calculation?

The Quick Method is simpler and does not account for HST paid on inputs or capital expenditures. The Detailed Method provides a more accurate calculation by considering these factors.

When is the HST due for a business?

HST is typically due on a monthly or quarterly basis, depending on the business's tax filing requirements. The exact due date will be specified on the business's tax return.

Where can I find more information about HST in Ontario?

For more information about HST in Ontario, you can visit the Canada Revenue Agency (CRA) website or the Ontario Ministry of Finance website.