Why does Quickbooks ask me for a Tax Code if I allocate a receipt to a Customer/Accounts Receivable?

Hello there, @paml1.

You may have set up sales GST/VAT rates in QuickBooks that's why it's asking you for Tax Code upon entering receipts. You'll have to select Out of scope of Tax from the Amounts are drop-down so you can save the sales receipt successfully. Let me walk you through the process.

Before we start, please make sure that the item you're adding isn't taxable to avoid issues when filing your tax to your tax agency.

Here's how to exclude your receipts for a Tax Code:

1. Click the Plus (+) icon.
2. Select Sales Receipt.
3. Choose your customer from the Customer drop-down.
4. Enter the necessary information.
5. In the Amounts are drop-down, select Out of scope of Tax.
6. Click Save and close.

I've attached a screenshot below for your visual reference.

Here are some articles you can read on for more details:

• Create and Send a Sales Receipt.
• How do I Set up Sales GST/VAT Rates and use them on Forms?

In case you might want to customise your sales receipts templates, you can check out this article for your future reference: Customise your Invoices, Quotes and Sales Receipts in QuickBooks Online.

Please know that you can always get back to this post if you have further questions. I'll be right here to help.