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.
Go to, Settings >> Tax Setup.
Click on the Add Region button at the upper right corner.
Enter the name of the region
Next, set up a zero tax category under the newly created tax region.
Go to Settings >> Tax Setup
Switch to the Tax Category tab
Click on the Add Category button.
Enter the Category Name.
Enter the Tax Code