What if some items on an invoice are not taxed, and some are?

Hello jennifer-clarade,

Welcome to Community!  QuickBooks Online automatically sets up common sales tax codes, based on your company location.   It's essential that the appropriate sales tax rates are applied to your invoices, to ensure accurate sales tax filings and reports.

For each line item or category that you enter on your invoice, you'll select a corresponding sales tax code from the ▼ dropdown menu for that row.  You'll need to select a sales tax code for each line item, otherwise you won't be able to save the form.  You'll have the option to choose from Exempt, Zero-rated, and Out of Scope when it's not necessary to add tax.  If you're not sure which tax rate applies, click here to learn more about common sales tax codes. 

If you still have questions regarding sales tax codes, I recommend speaking with an accounting professional. If you don't have an accountant, we can help you locate a ProAdvisor in your local area. 

Feel free to reach out again, if you have any other questions. We would be happy to help!