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 your questions to Harriet at Ask The Accountant.

QuickBooks Premier and Enterprise can be modified to better serve ad specialty distributors. Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor. She advises ad specialty distributors to use QuickBooks Premier and Enterprise, often in conjunction with other industry-specific software, to manage the complexities of the ad specialty business, with the results being time saved, errors eliminated and an overall accurate accounting of your business. Contact her at [email protected].

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