How can I add tax to an invoice that the customer is checked for tax exempt? One time event

mmaddoxneb-gmail · ‎July 06, 2024

JoesemM · ‎July 07, 2024

I appreciate the prompt response, mmaddoxneb. Yes, you're right. You'll need to make the customer taxable to add the taxes on their invoice. Let me guide you directly on how to do this.

Once you create an invoice for your customer, you'll need to click the See the math hyperlink to change the tax-exempt status. From there, you can review the taxes included in the invoice.

Here's how:

Go to the + New icon.
Click Invoice.
Select Add Customer and choose a customer from the ▼ dropdown. Make sure all of their info is correct, especially their email address.
Select Add product or service select a product or service from the ▼ dropdown and click the Taxable checkbox.
Click the See the math hyperlink.
Click Edit, then, uncheck the box beside the Mark this customer as tax-exempt.
Review the taxes to be included, then click Close.
You can also click Print and Download to preview the invoice when sending it to your customer.
Click Review and Send.

Once done, go back to the customer's profile and check the tax-exempt status box. This ensures that they won't be charged any taxes when you create their invoices. For more details, about sales tax exemption, see this link: Understand and set up sales tax exemptions in QuickBooks Online.

Also, I'll be sharing these resources that will guide you in recording invoice payments and personalize your sales forms in QuickBooks:

Feel free to reach out if you have any further questions about setting up invoices with sales tax or any other issues in QuickBooks. We're here to help and are always ready to assist you with your queries. Stay safe.

View solution in original post

ArielI · ‎July 06, 2024

Thanks for reaching out to the Community, Mmaddoxneb. Let's work together to include tax on an invoice for a customer marked as tax-exempt.

Given that this is a one-time event, you have the option to select the tax checkbox on your invoice to ensure the tax is appropriately calculated.

Here's how:

Click + New, then select Invoice.
Choose a customer and enter other information.
Check the Tax box and click the See the math link below.
Click the Edit link from the Customer section, then uncheck the Mark this customer as tax-exempt link.
Hit Save, then Close.
Press Review and send or Save.

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Additionally, make sure to record invoice payments as soon as your customer makes a payment. Promptly logging these payments helps maintain accurate records.

Don't hesitate to let us know if you have further questions about handling your invoices. We're always here to help.

mmaddoxneb-gmail · ‎July 07, 2024

Clicking the tax button changes nothing,

Each new invoice that I create whether it is a taxable or exempt, the tax box is selected on taxable products.

My problem comes when I bring up a tax-exempt customer and I want to make the products on this invoice taxable. Clicking the tax button on the product lines changes nothing
So besides editing the customer to taxable and I lose their tax-exempt number and change it back after running the invoice.

JoesemM · ‎July 07, 2024

I appreciate the prompt response, mmaddoxneb. Yes, you're right. You'll need to make the customer taxable to add the taxes on their invoice. Let me guide you directly on how to do this.

Once you create an invoice for your customer, you'll need to click the See the math hyperlink to change the tax-exempt status. From there, you can review the taxes included in the invoice.

Here's how:

Go to the + New icon.
Click Invoice.
Select Add Customer and choose a customer from the ▼ dropdown. Make sure all of their info is correct, especially their email address.
Select Add product or service select a product or service from the ▼ dropdown and click the Taxable checkbox.
Click the See the math hyperlink.
Click Edit, then, uncheck the box beside the Mark this customer as tax-exempt.
Review the taxes to be included, then click Close.
You can also click Print and Download to preview the invoice when sending it to your customer.
Click Review and Send.

Once done, go back to the customer's profile and check the tax-exempt status box. This ensures that they won't be charged any taxes when you create their invoices. For more details, about sales tax exemption, see this link: Understand and set up sales tax exemptions in QuickBooks Online.

Also, I'll be sharing these resources that will guide you in recording invoice payments and personalize your sales forms in QuickBooks:

Feel free to reach out if you have any further questions about setting up invoices with sales tax or any other issues in QuickBooks. We're here to help and are always ready to assist you with your queries. Stay safe.

mmaddoxneb-gmail · ‎July 07, 2024

Thanks, that is what I have been doing, quite cumbersome way but it works.

Just a Warning to any one else, once you click this customer to taxable you will lose their Tax resale/exempt number when you go back .
Thanks for the help

JamesAndrewM · ‎July 07, 2024

On behalf of my colleague above, you're welcome, mmaddoxneb.

Thank you for sharing your experience and the additional note about the tax resale/exempt number. Your input is valuable to us and helps us improve our service. Please don't hesitate to reach out anytime you need a helping hand. The Community is always eager to provide the best steps for your solution. Take care!

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How can I add tax to an invoice that the customer is checked for tax exempt? One time event