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Non-taxable sales tax code examples

QuickBooks sets up a list of common sales tax codes for you.

What does Zero-Rated mean?

What if I need a new sales tax code?

  1. Make sure you understand how sales tax codes work with sales tax items and sales tax agencies.

  2. See adding a new sales tax code.

    Topic not found. Enter add sales tax code in the Help's Search window.

Here are some examples of commonly-used non-taxable sales tax codes. You can always use NON for any of these types of sales, but many businesses are required by their tax agencies to qualify why a particular sale is non-taxable. Each sales tax code must be unique.

Sales Tax Code

Used for

OOS

Out-of-state sales. Many states do not charge sales tax for out-of-state sales. You might assign this sales tax code to a customer who has bought your product from your company catalog, but lives in another state. Many QuickBooks company files already include this non-taxable sales tax code.

LBR

Labor. In many states, labor services are not taxed, so you might assign LBR to a service item. Some QuickBooks company files already include this non-taxable sales tax code.

NPO

Non-profit organizations. Such organizations are not charged sales tax, even if the products and services you sell are taxable. NPO would be assigned to a customer.

GOV

Sales to government offices, which are not taxed.

WHL

Wholesalers, who are simply reselling the goods they buy from you.

RSL

Resellers, who are buying your products to resell to customers, or who are using your products to create a product of their own, which they then sell.

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