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Sales tax not being charged when the customer is exempt?
We have a major sales tax issue.
We have taxable items and non-taxable items, these are marked in our system. We also have customers who are tax exempt, these are also marked.
As it is now, tax exempt customers are paying NO sales tax at all on any item on any sales order.
BUT according to Pennsylvania SALES TAX LAW: Tax exempt customers must still pay sales tax on ANY item that is not used in production (these are the items we have marked as "TAXABLE" in our system).
Please SEE SCREENSHOT FOR VISUAL EXPLANATION...
How can we fix this?