It's nice to have you in the Community, @judy.baker. I’m here to walk you through the steps on how to change a service from taxable to nontaxable.
Here’s how to assign your items to different sales tax categories.
- Go to the Sales menu, then select Products and services.
- Look for the item you want to assign a tax category to, then select Edit.
- Select Edit sales tax.
- Select the Still don't see what you're looking for?.
- Select Taxable - standard rate or Nontaxable.
- Select Done, then Save and close.
You can also set up and track our inventory in QuickBooks Online. Check out this article for more details: Set up and track your inventory in QuickBooks Online.
Feel free to reach out if you have any further questions. Have a good one!