I am in the Dominican Republic. We have a VAT type tax called ITBIS. I created this to apply to all sales but their are certain transactions that are exempt. For example, Interest Income and Medical Services.
QBs Online is forcing me to choose a tax for interest income that I have earned on my bank account. How do I create these exemptions?
Also, we are a medical services company and do not want to charge our clients the ITBIS tax.
Thank you for posting here in the Community. I'm here to help with your concern about Sales tax exempt in QuickBooks Online.
When creating transactions, you have the option to choose the No VAT option (or Out of Scope depending on what you see) and Exclusive of Tax. You use the Exclusive of Tax option if you want to put exemptions to specific items only.
I'm adding a screenshot below for your reference:
As always, please let me know if I can be of additional assistance regarding exempting to VAT.