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Level 4




When applying a discount to a customer's invoice. Is this item taxable or non-taxable? 


I have this DISCOUNT item set up in QuickBooks as TAX CODE - non and it is under the ACCOUNT - Sales Discount.



1 Comment 1
QuickBooks Team


Good day, Eve2019.


To make verify if a discount is taxable or not, you'll want to reach out to the sales tax department of your State. Then, modify the item's tax code by following these steps:


  1. Go to List Item List.
  2. Double-click on the item to edit.
  3. Select the Tax Code (Taxable or Non-Taxable) of the discount.
  4. Click Ok

I've got this article for reference: Add, edit, and delete items.


Please let me know if you have any additional questions or other concerns. Take care and stay safe. 

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