How do I create an invoice that will calculate sales tax on the entire order with Avalara and then deduct a gift card redemption?

I'll guide you on how to create an invoice in QuickBooks Online (QBO) without applying the sales tax to the entire amount, @leslie89.

To ensure the sales tax isn't applied to the total amount after the gift card deduction, you'll need to uncheck the Tax status of the gift card item. Here's how:

1. Go to + New and select Invoice.
2. Select a customer in the Customer field.
3. Enter the products as well as the gift card item.
4. In the gift card line item, be sure to unselect the checkbox in the Tax column.
5. Click Save and Close.

You'll want to click the See the math link below the Sales tax section to review how QBO calculates your sales taxes.

Furthermore, you can run reports for your sales tax liabilities or manage your sales tax payments in the Sales Tax Center in QBO.

We'll be happy to assist you anytime if you have other concerns regarding sales taxes in QBO. Our team is available 24/7 to help. Keep safe.