I am in uae using qbo uae version for service based client. I need to record a bill in which some part is taxable and other part is not taxable.

I've got some troubleshooting steps to track the taxable and non-taxable bill transaction, zaidy.

We appreciate you for recording the transactions as a Journal entry. To show the taxable and non-taxable items in the bills for tax return, we need to apply the sales tax when creating it.

Before doing this, let's make sure we turn on the tax tracking in QuickBooks Online (QBO).

Here's how:

1. Click Taxes on the left menu.
2. Hit Set up tax.
3. Set up the tax agency details such as the name of your tax agency, any official tax number that has been assigned to your company, your reporting method, how often you file your tax to your tax agency, and whether this tax is meant for sales or purchases.
4. Select Next.
5. Follow the steps to finish the setup and tick Done.

For more details about this one, please check out this article: How do I set up sales GST/VAT rates and use them on forms? (International QBO).

The follow the steps below to track the taxable and non-taxable items on the bill:

1. In the bill transaction, enter the products and services in the Category column.
2. Then, type the amount.
3. Click the Tax column drop-down.
4. Select the appropriate tax rate.
5. For non-taxable services, just leave the Tax column blank.
6. Hit Save and close.

For more details about applying sales tax to transactions, refer to this article: Applying Sales Tax to Transactions and Sales Forms.

I've got a link here that contains articles about managing tax in QBO: https://quickbooks.intuit.com/learn-support/tax/misc/02/tax-global?label=QuickBooks%20Online.

That'll do it. I'm just one click away if you need a hand with filing your tax return. I'm always here to help.