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.

•Once you make the change the Confirm Taxable Change message box  displays "You have just updated the taxable status of an existing item. Continue?".

•Click Yes to continue or No to cancel.

 

 

 

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)