Many times you would have clients who you would not want to fall into the purview of taxes while sending quotes. For such instances, you can set up tax exemption basis specific clients. 

First, set up a new tax region with zero tax rates.

  1. Go to, Settings >> Tax Setup.

  2. Click on the Add Region button at the upper right corner.

  3. Enter the name of the region 

Next, set up a zero tax category under the newly created tax region.

  1. Go to Settings >> Tax Setup

  2. Switch to the Tax Category tab

  3. Click on the Add Category button.

  4. Enter the Category Name.

  5. Enter the Tax Code

  1. Set the Tax Rate as 0.

  2. In case of multiple tax categories existing previously, they are mapped to any new tax region, hence set the Tax Rate as 0 for such categories as well (See ‘Local’ in the image).

Next, apply the ‘Tax Exempt’ region to your client. 

  1. Go to Clients.

  2. Click on the client name >> Client Details > Edit.

  3. Set the Tax Region as Tax Exempt.

While creating quotes for a tax exempted client, make sure to set the Tax Category of each of the products to ‘Zero Tax’ to avoid applying taxes.

  1. Go to the quote.

  2. Click on the ellipsis on the right side of the product.

  3. Click on Edit Product.

  4. Set the Tax Category as ‘Zero Tax’. Save changes.

To learn more about configuring taxes, check out the article here.