Taxable items (Products & Services) with "Tax" column unchecked on invoice still appear in Sales Tax Liability Report as taxable.

Hi there, @CreativePrinters

I understand that managing Taxable items (Products & Services) on the invoice is crucial to ensure the accuracy of your Tax Report. Allow me to share some information to help you fix it.

The stored cache may cause unusual behavior in QuickBooks because it affects the performance. We can reset it to verify if it is causing this odd behavior. This process plays the same role as clearing your cache from your web browser, or if not, you can use another supported browser which helps us start again with a clean slate.

Moreover, if the issue persists, we've also received volumes of related cases about this issue therefore I recommend reaching out to our Customer Care Team since they have the expertise and tools to help collect more information about the issue and provide the appropriate fixes for this concern.

Furthermore, you can set up your sales tax category for your product and services to accurately calculate how much to tax your customers. Also, check out this article to customize and generate a report about non-taxable sales in QuickBooks Online.

Let me know whenever you have more queries about your sales tax calculations or other QuickBooks-related concerns. We're always around to assist you further. Stay safe and well!

The browser doesn't generate the report because it doesn't generate the numbers used to. Any browser on any machine displays the same report. This has been my experience, at least.

I have my P&S list set-up as correctly as allowed. The categories are pointless for me because the only one that applies to anything I charge for is Shipping fees, but I don't charge tax for that because it's an exemption in my state, and should show-up as non-taxable sales, but now I fear they aren't. A better way to handle P&S sales tax is to allow assigning the same custom rates as available for Customers. That would be *chefs-kiss*, but possibly also a can of worms...

Though there doesn't seem to be any help for this problem, in attempting to figure it out I discovered the source of a discrepancy in my sales tax for last month, so that's a plus. It was due to a taxable customer that purchases an item for resale. I had earlier changed their status to the taxable rate and added a non-taxable item in the P&S list just for them for that item. This gave me the opposite problem of a taxable customer buying a non-taxable item. It got listed under taxable income but no tax was collected. This is what I fear for my "shipping" item. It's non-taxable and should show up as such in the report on a taxable row like this other item should have. The desktop version didn't have this particular problem.