On Cloud, you can mark an account as tax-exempt and exempt all opportunities created for the account from product and labor taxes.
If you want to know more about marking an account as tax-exempt, check out this article.
When an account is marked as tax-exempt, you will see that all quotes created for Project opportunities are marked as tax-exempt by default. So, the change orders created in the relevant projects will also have the tax-exempt status set to ON.
If you want to enable taxes on the items added to a change order, you can set the tax-exempt status at the top of the change order to OFF. You will see the following in the change order.
All products added to the change order will have the "Taxable" option set to ON if their Taxable setting in the catalog is set to ON.
All labor added to the change order will come with
An adjustment added to the change order will have the "Taxable" option set to ON if its Taxable setting is set to ON under Settings.
If you have enabled the tax-exempt functionality under "Settings > CRM" and want to disable it, you will need to set the tax-exempt status of all change orders that have not yet been accepted to OFF.