Welcome to the Community, @beanbagfoodprogr.
I'm here to provide information about getting your QuickBooks account tax-exempted.
If your company is exempt from sales tax, you may need to contact us and send a copy of your tax-exempt certification. This allows Intuit to update your account as Sales Tax Exempt.
Once the required document is sent, it'll take at least 5 to 10 business days to get your account Sales Tax Exempt. After the update, you'll no longer see sales tax charges on future orders or service fees.
For detailed information, kindly visit: Request sales tax exemption and refund.
However, if you're referring to tax-exempting items and customers in QuickBooks Online( QBO), let me guide you on how:
Generally, you're not required to collect tax on the following:
- Resold items: Retailers don't typically have to pay sales tax on wholesale purchases. It's assumed that the end consumer will pay sales tax on these items at the point of purchase.
- Raw materials: If you produce and sell goods that will be used as raw material for other goods, these items are typically considered sales tax exempt.
- Transactions with nonprofit organizations: Sales made to nonprofit organizations are normally exempt from sales tax. If you conduct business with tax-exempt organizations, you'll need to get a copy of the buyer's tax-exempt number or certificate issued by the state/province they’re in.
To set up your tax-exempt products or services, see Step 1 in Add product and service items to QuickBooks Online. Moreover, to keep a customer from ever getting charged sales tax on an invoice, you can see the Add a new customer section (step 5) in Add and manage customers in QuickBooks Online.
For detailed information, kindly refer to this article: Understand and set up sales tax-exemptions in QuickBooks Online.
Additionally, I'll also share this article to serve as your reference if you want to learn how to run, print, and customize payroll reports in QBO: Run payroll reports in QuickBooks Online Payroll.
Feel free to leave a reply if you require further assistance with managing your QuickBooks account. The Community team always has your back. Have a good one.
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