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Level 2

If I have a customer flagged as not taxable, why is tax added on the invoice. Should not the customer profile settings override the taxable items on their invoices?

 
5 Comments
Anonymous
Not applicable

Re: If I have a customer flagged as not taxable, why is tax added on the invoice. Should not the ...

Thanks for joining the Community, @accounting142,

 

I can share some information about how the Sales Tax feature works in QuickBooks Online.

 

Our engineers have determined that this is working as designed for users using Automated Sales Tax. When you add a taxable item to any invoices or sales receipts, the system will automatically consider it as a taxable sale notwithstanding the tax exempt customer.

 

As a workaround, you can simply uncheck the Tax box to remove the tax calculations for the item or sale. 

 

To know more about the Automated Sales Tax feature, checkout this link: Set up and use Automated Sales Tax

 

Please update me if you have other questions about QuickBooks. I'm here to lend a hand whenever you need one. All the best!

Level 15

Re: If I have a customer flagged as not taxable, why is tax added on the invoice. Should not the ...

ROFLMAO

 

Working as designed

WAD

 

Because the programmers failed to do it correctly, does not mean it is right.  I can program a computer to say that 2+2=5 - would you be satisfied?

 

The OP is correct, the item may be taxable to 99% of the customers, but if one customer is tax exempt, the program should NOT tax them anyway.  Manually resetting or changing the item tax status defeats the purpose of using a computer.

Level 2

Re: If I have a customer flagged as not taxable, why is tax added on the invoice. Should not the ...

Jen_D, This will mean that I have to keep a list of all my customers near me indicating whether they are taxable or not, or check each customer's profile in QB's before invoicing, so I can see if they're taxable or not, so when I enter their invoices I will remember to manually uncheck the tax box for each item (???)
Level 2

Re: If I have a customer flagged as not taxable, why is tax added on the invoice. Should not the ...

Rusler, I totally agree with you. Otherwise, what is the purpose of having that feature in the customer's profile setting?
QuickBooks Team

Re: If I have a customer flagged as not taxable, why is tax added on the invoice. Should not the ...

Hello there, @accounting142.

 

Thanks for posting in the QuickBooks Community.

 

I know how this can be important to your business. I'll make sure to note this preference to help improve the features in the software. In the meantime, I suggest following the workaround shared by @Anonymous.

 

You can check regularly for product updates and feature enhancement through this link: QuickBooks Blog.

 

Let me know if there's anything else I can do for you. I always have your back. Wishing you and your business the best.

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