How do I make exempt customers not calculate tax in QuickBooks Online?

Overview

I need to make exempt customers not calculate tax in QuickBooks Online.

Environment

QuickBooks Online

Avalara Avatax

Resolution

• There are two ways to exempt customers in QBO
• If you would like these transactions to come to AvaTax do the following:
  • Add their exemption number in the customers page.
  • Go to the Tax Info tab when you edit the customer page.
• If you do not want these transactions coming to AvaTax.
  • Login to https://avataxforqbo.com and click on Edit Configuration
  • Switch the Calculate Tax toggle to 'Tax only taxable customers'
  • Then in the Tax Info tab on the customer in QBO, uncheck Taxable Customer.