Every line item on an invoice needs a tax rate, even when no tax applies, for example for a client who’s exempt from tax because of where they are or an agreement you have.
For those cases, create an empty tax rate: one with a name but no tax name and no value.
Create an Empty Tax Rate
Go to Settings > Company info > Tax rates and click Add tax rate. Enter a Tax rate name, such as "No Tax", and choose the Subsidiary it’s for. Leave Tax name and Value empty, click Save, and confirm that you want to create an empty tax rate.
The new tax rate appears in your list.
Use It on an Invoice
On the client’s invoice, choose the empty tax rate for the line items that don’t carry tax.
The invoice PDF shows no tax for those line items. In this example, the "Services 8/24" line item uses "No Tax", and the "Expenses" line item uses a regular tax rate.
