panchroma
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wonderful!
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Under setup >payment > tax rules > apply tax, wouldn't you want everything selected? Some other things to check -- that client should actually pay tax based on your tax rules, and client > profile > tax exempt is deselected.
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In the same window (setup > payments > tax rules ) have you also checked the first 'tax enabled' box. Also under setup > products and services for every product your need to check details > apply tax Good luck! Dave