Tax Exempt settings refer to whether or not parts or labor charges are taxable or tax-exempt. (This term is not referring to how to tax supplies or hazardous materials, or to setting tax percentages.) A line item will inherit the vehicle’s tax exempt settings, and a vehicle will inherit a customer’s tax exempt settings.
Tax Schedule settings refer to which of the configured or default Tax Schedule tables are used to calculate the tax on a Customer, Vehicle, or Line Item. A line item will inherit the customer’s tax schedule settings, and a vehicle will inherit the vehicle’s tax schedule settings.