1.    Go to Accounts Payable, Configuration and General.
2.    Enter the GST (Federal) rate.
3.    Enter the GST and HST tax entity as shown below.
4.    Enter a default PSB Activity Code or leave blank. Note: If you enter a default, and later you decide you want to leave it blank, you'll get an error message.
5.    Mark the checkbox "This organization is located in an HST participating province"
6.    Go to Accounts Payable, Configuration and Default Accounts.
7.    Enter a default GST Receivables account and a PST (Provincial) Receivables account.  Note: You are required to enter accounts but you can also specify these receivable accounts on the Activity Types
8.    Go to Accounts Payable, Configuration and Tables.
9.    Highlight Sales Tax Entity and add GST, HST and PST table entries if they do not already exist.
10.  Go to Accounts Payable, Configuration and Sales Tax Items.  Note:  Please see Canada Revenue Agency for more information. 
11.  Add a sales tax item for each province with the proper percentages.  Note: It is advisable to enter in a Tax ID and Description that is recognizable to your users.