Why does QBO continually tell me that it can't calculate sales tax. It reminds me every time I add a line item. We have AvaTax set up and most clients are tax exempt.

I recognize the importance of calculating sales tax on invoices correctly, Tammy. Let me share some steps to prevent the error message from popping up again.

You can review the item and customer setup to ensure they're nontaxable. I'll show you how:

1. On the left menu, select Sales, then Products & services.
2. Locate the items on the list, then click Edit.
3. On the Product/Service information, scroll down to Sales tax. Press Edit sales tax, then choose Nontaxable.
4. Tap Done.

On the same page, select Customers to find your clients. To proceed, follow the steps below:

1. Select your client's name, then click Edit on their profile.
2. Scroll down to the Additional info section, then tick This customer is tax exempt checkbox under Taxes.
3. Hit Save.

I'm adding some resources to learn more about tracking items and handling customers:

• Add product and service items to QuickBooks Online
• Add and manage customers in QuickBooks Online

Save this guide about receiving payments for future use: Record invoice payments in QuickBooks Online.

If you still need help with your sales tax, leave them in the comment section below. I'll be here to assist you further. Stay safe.