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Replying to:
MirriamM
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Hi there, @kpagnotta. Let me share some details about automated sales tax.

 

Once you turn on the automated sales tax feature in QuickBooks Online (QBO), turning it off is not an option. As a workaround, you can make the items not taxable and set customer as tax-exempt.

 

To make items into non-taxable, here's how:

 

  1. Go to the Gear icon at the top.
  2. Select Product and services
  3. Locate the taxable item you want to change to non-taxable by clicking Edit under the Action column.
  4. Go to the Sales tax section, and click on Edit sales tax.
  5. Select Nontaxable.
  6. Click Done, then Save and close.

 

To make a customer into tax exempt:

 

  1. In the left menu, click Sales.
  2. Go to the Customers tab.
  3. Locate and click the customer's name.
  4. In the Customer Details tab, click the Edit button.
  5. In the Additional info section, put a checkmark for This customer is tax exempt.
  6. Click Save.

 

To learn how QuickBooks automatically calculates the total tax rate, see this article for detailed information: Set up and use automated sales tax in QuickBooks Online

 

To help you record sales tax payments in the future, you can read this article: Manage sales tax payments in QuickBooks Online.

 

If you have any other questions about sales tax, let me know by commenting below. I'm here to answer them for you. Have a good day.

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