After you have set up your tax codes, you can set a default tax code on a customer record.
For example, you can set a default tax code that defines a customer as VAT-exempt or GST-exempt. Charities and nonprofit organizations are usually exempt from tax.
This default tax code will be automatically filled on all transaction forms related to this customer. However, you can override this on the transaction form.
Selecting anything other than the default ‘blank’ selection will override the tax engine lookup for that customer on transactions and will always use the selected tax code.
1.Go to Lists > Relationships > Customers.
2.Click the Edit link of the customer record, or click New to create a new customer.
3.Click the Financial subtab.
4.In the Tax Item field, select a default tax code for this customer.
5.Click Save.