Can't change customer to not taxable?

Thank you, larry-nabtech-co, for connecting with the QuickBooks Community! I am happy to see you here. Here's how to set up a tac-exempt customer in QuickBooks Online:

1. Go to Customers and select the customer name.
2. Click the Edit option.
3. Scroll until you reach the Additional info section.
4. Select the checkbox for This customer is tax exempt. Then, select why they’re tax exempt in the Reason for exemption ▼ dropdown.
5. Select Save.

That should do it! Let me know if you have any other questions or concerns. I will be around. See you later.