How to have taxable and non-taxable items on the same invoice?


You are starting to charge sales tax to customers in a different jurisdiction, which only taxes certain items. These items may or may not be taxable in other jurisdictions. How to ensure that you have taxable and non-taxable items on the same invoice?


For this particular scenario, you can use the special tax rule to implement the desired behavior.

Special tax rules are defined for any exemptions or deviations from the usual rate of tax for a jurisdiction/state.

You may set them up for a particular customer or class of customers, and/or for a particular item or category of items or any combination of customer/class and item/category.

Special tax rules may also specify a limit on the price per item, wherever applicable.


If in a jurisdiction, the normal rate of tax is 5%, any item/ category of items or customer /class of customers to be exempted or taxed at a different rate will be brought under a special tax rule.

The video below will detail the process:




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