Selling Items to Tax Exempt Customers

Some customers are exempt from paying sales tax. You need to acquire a tax-exempt number from the customers who tell you they are exempt. QuickBooks provides a place where you can enter this number. Then when you issue an invoice to that customer, tax is not charged. You don't have to make any changes on the invoice because the process of not taxing particular customers becomes automatic.

Click the Customer Center button on the Home page icon bar.

Click the Customer & Jobs tab.

Double-click the name of the customer not subject to sales tax, or press Ctrl+E to open the Edit Customer window.

Did You Know?

The Job Info tab might not appear in your Edit Customer window. You'll notice that the sample screen on this page does not include a Job Info tab. The Job Info tab appears in the Edit Customer window only when there are no specific jobs set up for the particular customer. If you have added individual jobs for this customer, the Job Info tab appears in the Edit Job window for each job. When you've already set up jobs, there is no need for a Job Info tab to appear in the main customer window.

Click the Additional Info tab.

Change the Tax Code to Non for non-taxable status.

If applicable, enter the customer's resale number.

Click OK to save your changes.

IMPORTANT

Double-click on Customer, not Job. When making changes such as indicating a tax-exempt customer, be sure you open the Customer's edit window, not the edit window for a Job. There is no option for setting sales tax information in the job windows.