Thanks for joining this conversation, BNC.
When creating an invoice from a billable expense, the reason why it becomes a non-taxable is that QuickBooks will detect billable expense as services, which are mostly non-taxable. The option to automatically set them up as taxable is currently unavailable. You need to manually change it as a workaround.
I'll make it my priority that your feedback reaches our Product Developers. They're always looking for ideas from users on how to improve QuickBooks.
I suggest visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features. Here's the link: Product Updates.
Just in case, I'm also adding these articles for future reference:
I want to make sure everything is taken care of for you, so let me know if you have any other issues or concerns. I'll be here to help. Have a good one!
