Ok so I have an open ticket with support for this but been more than 1 week and still nothing. So I will be turning to you guy's.

So we are using Zoho Books Canada edition. They came out with an update in august of this year (so far only new account get it) they change the way tax rules are done and applied.

So right now if we make an invoice, sales order or quote in Zoho Books or in Zoho inventory you can see the Tax is the proper one.

Now if we add an item the tax stays the same as you can see in the following picture.

So everything is working perfectly in Books and Inventory. 

We did the integration with Zoho CRM and everything is working accounts are being copied over and I can make quotes, invoices and sales orders.

But something super weird keep happening.

if I make an invoice from an account in the CRM you can see the tax is the proper one.

The second we add an item the tax goes wild and change to exempt.

Now the items don't have any tax rules and I use the same item for both test.

Nope that this is happening in our demo org and a new customer that we are onboarding.

So I made new account, new contact new tax rule, new items... and still the same issue.

We even tried assigning tax rule to the item and the customer and still the same issue.

The reason this is a huge issue is that sales people are doing everything from the CRM they will not log on in Books. 

If any one as an idea to help me figure this one out would be very nice.

Thanks