Note:  In this example we are using Quicken Home & Business 2010.  Older versions of Quicken will use a similar process.

1. Click on the Business menu, then select Sales Tax Code List
2. In the Sales Tax Code List, create a new sales tax code by clicking New (from the top left menu)
3. Enter “X” for the Tax Code, “Old – Standard” for the Description, with Tax Rate 1 being 5% (GST) and Tax Rate 2 being your current provincial rate (PST) and click “OK”
4. Click on the tax code you are currently using and click “Edit” from the top left menu
5. Leave the tax code as “S” and change the description from Standard to “Harmonized – BC (or ON)”.  Change Tax Rate 1 to be 12% (BC) or 13% (ON), remove the rate for Tax Rate 2 and click OK.

Next you may want to change the name of the GST account to HST since the new tax will all be going to this account by default.

1. Select the GST account in your account list (left list – default location) and then click the Overview button at the top of the account.
2. Click on Edit Account Details and change the account name and description as required. For Example: HST instead of GST and Harmonized Sales Tax instead of Goods and Services Tax.

You will also need to edit or create new invoice templates that only show one Tax and refer to HST rather than GST.  

1. Click on the Business menu, select Invoices and Estimates and then Design Invoice Forms
2. Click on the arrows next to Sales Tax, uncheck use Sales Tax 2 and edit the name of Tax 1 to be “HST”

That’s it!  You’re now setup to track the new HST tax.  If you need to enter any missing invoices under the old GST and PST tax rates, just use the “Old – Standard” tax code you created earlier.

Note: Quicken will keep using the old tax rates for previously entered invoices unless you change the quantity or tax code on the invoice after opening it.