Use Customer Tax Codes

Software: QuickBooks Desktop accounting software

You set the default tax code as 7% Standard Rated in the item profile and Non tax code in the Customer profile. When creating invoice to the customer, QuickBooks uses the Non tax code instead of the 7% standard rated code set in the item profile is because you have set to use the customer tax code in the QuickBooks preferences.

If you prefer to use the tax code set in the item profile instead of the tax code set in the customer profile, you may change it from the Sales Tax preferences (go to the Edit menu, Preferences, Sales Tax, Company Preferences and unchecked the “Use Customer Tax Codes” check box).

QuickBooks accounting software

Note: Disable the “Use Customer Tax Codes” will also disable the Tax code selection in the Customer profile.