Change an Inventory Item's Tax Exempt Status
                                            To change the tax exemption status of an inventory or service item:
                                            
                                                - Open the record for the inventory item. 
How?- In the Home window, click Inventory & Services on the navigation pane.
 - In the Tasks pane, right-click  the Inventory & Services icon and select Modify Inventory & Services from the menu.
 - Select an inventory or service item from the list and click OK.
 
  
                                                - On the Taxes tab, 
 select a Tax in the table and click on the 
 current Tax Exempt setting to turn exemption 
 on (Yes) or off (No).
 
                                                - Click Save 
 and Close.