Know When Your Customers Are Tax Exempt
Question: I am creating an item in QuickBooks Premier, and it makes me select it as “Tax” or “Non for Sales Taxes.” Sometimes it is taxable and sometimes not, depending on the customer. What do I do?
Answer: If an item is ever subject to sales tax in your state, create it as a tax item. If your customer is tax exempt, and duly noted in QuickBooks, this tax exempt status, as a customer, will override the tax status of the item, and no sales tax will be calculated for that item in this order.
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant."
Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.