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butternutcreekfarmz
Level 1

My sales entry always show tax exempt. How do I add tax to them?

 
1 Comment 1
MirriamM
Moderator

My sales entry always show tax exempt. How do I add tax to them?

Your customer may have been set up as exempt from sales tax, or the product items in the transactions are tax-exempt, butternutcreekfarmz. This is why the sales transactions are showing as tax-exempt.

 

To add taxes to your sales transactions, let’s check and modify your customer profile tax settings as well as the product settings.

 

Here's how:

 

  1. Navigate to the Customers page and locate the customer for whom you want to create a sales transaction.
  2. Click the Edit button.
  3. In the Additional Info section, uncheck the box labeled "This customer is tax exempt," and then click Save.
  4. Next, go to the Products & services page.
  5. Find and select the item you want to include in the sales transaction.
  6. Click Edit in the ACTION column.
  7. In the Sales Tax section, click the Edit Sales Tax link.
  8. Select Taxable.
  9. Click Done, then click Save and close.

 

After that, you can create an invoice or sales receipt with sales tax.

 

To learn how sales tax works in QuickBooks Online (QBO), you can check out this article: Learn how to calculate sales tax.

 

Additionally, we have a team of experts who can offer personal guidance on linking your accounts, automating tasks, and teaching the best bookkeeping practices to increase your efficiency. Check out QuickBooks Live Expert Assisted for more details.

 

If you have questions about how to receive payments for your invoices, you can always visit the Community again. We're here to help you.

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