If you've elected to use the Quick Method for GST/HST, follow these steps to accurately report your income in Wealthsimple Tax:

Reporting Quick Method income:

1. Add the Business, Professional, and Commission Income section to your profile
2. Enter your GST/HST number in the Identification section
3. In the Income & Expenses section:
   • Enter your gross sales, including sales tax (if nil, enter 0)
   • Enter the sales tax collected on the next row
   • Answer "Yes" to the question "Are you using the Quick Method?"
   • In the upper field labelled "GST/HST collected or collectible on sales, commissions and fees eligible for the Quick Method", enter the GST/HST collected
   • In the lower field "For each applicable remittance rate, include (sales, commissions and fees eligible for the Quick Method plus GST/HST collected or collectible) multiplied by Quick Method remittance rate", enter the amount you actually remitted to the CRA

Important notes:

• Wealthsimple Tax does not include a GST/HST return. The references to lines 103 and 107 are from the CRA GST/HST worksheet, which many Quick Method filers use to calculate their HST return
• The upper field in Wealthsimple Tax represents the GST/HST collected on supplies to clients
• The lower field represents the amount actually remitted to the CRA for GST/HST
• To determine the amount for the lower field, subtract line 107 from line 103 on your CRA GST/HST worksheet before entering it in Wealthsimple Tax

Understanding the calculations:

• Your adjusted gross sales will include your actual sales plus government assistance
• Government assistance is the difference between the tax you collected and the amount you remit to the CRA

Example calculation:

Let's say an Alberta service business (remittance rate of 3.6%) with $100,000 in sales collected $5,000 in GST. The quick method election was in effect at the start of the fiscal year, so this business qualifies for the 1% credit on its first $30,000 of sales. The following amounts would be from the GST/HST return:

• Line 101 or Gross sales including GST: $105,000
• Line 103, or GST remitted: $3,480 ([line 101 x remittance rate] minus [$30,000 x 1%])
• Adjusted gross sales: $101,520 ($100,000 + $1,520 government assistance - i.e. the sales tax collected from customers but didn’t have to remit to the CRA)

Example entries:

• Gross sales, including sales tax: $105,000
• Sales tax collected:$5,000
• Answer “Yes” to the Quick Method question
• Sales tax collected: $5,000
• Enter the amount from line 103 of the GST/HST return: $3,480

Remember:

• The Quick Method can simplify GST/HST calculations but may not be beneficial for all businesses
• Keep all GST/HST returns and supporting documents for your records

If you're unsure about using the Quick Method or how to report your income, consider consulting with a tax expert.