Remove Tax on Shipping

Hi there, @bc35.

Currently, removing the tax on shipping in QuickBooks Online is unavailable because QuickBooks is compliant with the state. Also, it will automatically calculate the customer's tax-exempt status, the location where you ship and sell the product. 

You have an option to remove the shipping amount, then create a service item and add it in the Product/Service section. Ensure that the Tax column is unchecked, so the shipping isn't have a tax. 

Here's how: 

1. Go to the New button, then choose the Invoice tab. 
2. Select a customer's name in the drop-down.
3. In the first line of Product/Service, choose the item, then enter the amount. 
4. In the second line, click +Add new to create a service charge. 

       5. Tap the Service button. 

       6. Complete the necessary field and tap Save and close. 

Then, once you receive payments from your customers, you'll want to enter them in QBO to organize your records: Record invoice payments.

You can always open the Sales tax report by going to the Report tab. You can customize it to show specific information. Also, you have an option to hit the Save Customization to save the report. It will save on the Custom report page. Memorizing reports in QuickBooks, it’ll help you save time since it automatically updates every time there are newly added transactions.

You also have an option to turn on the Automatic send email reports feature in QBO. For more information, visit this article: Set schedule and email information for a memorized report.

I've attached articles about how to modify tax rates, to set rules for how to tax a product or service, and other related topics. 

• Add sales tax categories to your products and services
• Sales Tax in QuickBooks Online
• Edit sales tax rate in QuickBooks Online
• Learn how QuickBooks Online calculates sales tax

Feel free to add a comment below or click the Reply button if you have other questions. I'm ready to help. Have a good one!