QB Issue Resolution:

you should check with your state sales tax office, but most states require that you collect tax on what you sell.

whether you pay sales tax on materials you use to make something to sell, is your issue, usually states have a resellers permit form you download and fill out, hand it to the vendor and they sell those materials to you sales tax free.

Resolution for Issue 'Should customers pay tax on products built in house and sold?' available: Yes (Solved).
Source: Intuit Community forum.

Should customers pay tax on products built in house and sold?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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