Error Posting Customer....The tax item is invalid.

Description of Error:

When attempting to save a customer or post invoices the following error appears when using the QuickBooks interface:

Error Posting Customer 0019349:

There was an error when saving a Customers list, element "Customer Name". QuickBooks error message: The tax item is invalid.

Cause of Error:

QuickBooks is not setup with a default tax code. A similar error will appear if you attempt to create a customer in QB.

Resolution:

Set a default tax code in QuickBooks. This can generally be accomplished by going into Single-User mode and selecting Edit → Preferences → Sales Tax.