Check this option if the item is taxable for one or more customers.

 

Tax will only be calculated for an item if the customer has tax rates defined.

 

You will need to respond to the Confirm Taxable Change dialog once you make the change.

 

 

The value of the Taxable field can be overridden on a per customer basis in the Edit Special Price Miscellaneous Parameters dialog (located on the Special Price tab of Customer or Inventory File Maintenance).