Hello there, @ctlbill.
Yes, you can make it as non-taxable by modifying the item details.Let me show you the steps below.
Here's how you can edit and set your items as non-taxable:
This way, your products and services will now be non-taxable items.
Here's a screenshot for your visual reference.
Also, for future reference, you can check this hyperlinked phrase about how to enter late fees or finance and service charges on invoices.
I'll be always around here in the Community to help you if you have any other questions. Have a great week!
My late fee's are set to Non-Taxable, however the automated late fees is still marking them as taxable.
My screen does not look like yours, it has a tax category. I have screen shots if needed but this form would not let me post them.
You can turn off the automatic late fees from the settings. Let me walk you through the step-by-step process.
Please read this handy article for more information about setting up and applying automatic late fees.
If you have other questions and concerns about fees, please let me know. I'd be more than happy to assist you further. Have a great one.
Welcome to the thread, @jmd1.
Thanks for providing a screenshot and detailed information about your concern. It was super helpful, and I feel like we are on the same page.
I have replicated this on the Test Drive company and was able to see that late fees are no longer applying tax automatically when setting to Nontaxable.
To isolate the issue, I recommend changing the Sales tax category for late fees using a private browser and check the invoice right after. Some function modules may be affected by outdated cache files, which can slow down and affect QuickBooks functionalities.
Here's how to open it:
If it works, then your main browser may have too much historical data from previously visited websites which causes this kind of behavior.
To ensure this doesn't happen again, it's a good idea to clear the cache of the browser you're using. The following article contains additional insight, as well as steps for the supported browsers: Clear cache and cookies to fix issues when using QuickBooks Online.
To learn more about the items, you add to lists and use on sales forms, read this article: Adding Products and Services, Customers, and Vendors to Lists.
Please let me know how it goes. I'll be looking forward to hearing back from you. Have a great day!
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I just want to point out that it's the system applying the late fees with the wrong taxable status. If I manually enter a line item it works correctly. The settings remain consistent, and correct, regardless of what browser or system I use (Chrome, Safari, Mac app).
Today when a late fee was automatically applied by the system it posted as taxable again, even though all settings are set to non-taxable. This essentially means I need to monitor every invoice that is approaching a late fee date. It seems like this is outside the scope of my browser and more of a system issue that I have no control over.
Thanks for your continued help!
Hello again, jmd1.
Thanks for reaching out to the Community about the late fees being marked as Taxable. I’m here to share some information about this unexpected behavior you’re experiencing.
We’ve received reports that some users are being taxed for the late fees, even if the item is non-taxable. This issue is being worked on by our engineers with utmost urgency.
While there isn’t any workaround available, we’ll have to add your company to the list of affected users. This is to ensure you’ll receive email updates about the investigation.
I have to collate sensitive data to verify the account. The security and safety of your personal information are our top priorities, so I suggest contacting our QBO Care Team.
One of our specialists can add your name to a secure environment. The most up to date contact information can be found below:
For additional information about the Automatic Late fees feature, check out the Set up and apply automatic late fees to invoices article. It provides an overview of the steps on how to edit the late fees on invoices, set a custom fee, and answers to frequently asked questions.
I appreciate your patience while we’re working for the permanent solution. Reach out to me if you need some help while working in QBO. I’m always ready to lend a helping hand. Have a good one.