This latest update has caused our taxable customers to not be charged tax and QB keeps trying to calculate tax on my tax exempt customers. Also you cannot do subcustomers

Thanks for raising your concern here, @melvin1.

Let me provide the steps to fix the issue about the mistakenly applied taxes to your tax-exempt customers and no tax for taxable ones.

Before anything else, I'd like to know what happens when you add your sub-customers.

Right now, let's review your customer tax status by running the Customer Contact List report. It will show who are taxable and tax-exempt customers. Here's how:

1. In the left side tab, select Reports.
2. Type in Customer Contact List. Then, click if it shows.
3. If you're in Modern view, go to Columns. Then, include the Taxable column in the report. If you're in Classic view, click the Gear icon on the page shown beside the Export icon and tick Taxable.

The customers that have a Yes status in the Taxable column are taxed. Those who have blank statuses are tax-exempt. If you see an incorrect one, you can correct it in the Customers tab. Check out this article for more info: Add and manage customers in QuickBooks Online.

However, if the report is accurate, let's perform some basic troubleshooting steps to fix the issue. This will also fix your issue when adding a sub-customer. We can start by accessing your QuickBooks Online (QBO) account in a private/incognito browsing window. This will identify if it's a browser-related concern since this won't save cache and cookies.

Feel free to utilize these shortcut keys:

• Google Chrome: press Ctrl + Shift + N
• Mozilla Firefox: press Ctrl + Shift + P
• Microsoft Edge: press Ctrl + Shift + N
• Safari: press Command + Shift + N

Then, create an invoice for your customer. Once it works, initiate a clear cache to remove the outdated files. If the issue persists, use another supported browser. This happens if the one you're currently working on has a temporary issue with QuickBooks.

Also, you can read this article to help you set up a custom sales tax rate: Use custom rates to manually calculate taxes on invoices or receipts in QuickBooks Online.

We're glad to have you here. And you can always return if you have additional questions about managing your customer's taxes. We'll be willing to help you. Have a good day.