If you are a VA in Texas providing administrative services to local clients, 20% of those services are tax exempt.
When I filed my first quarter taxes, I was informed by the state Comptroller's office that 20% of administrative services (data processing services) is tax exempt. Here is the link they provided me, http://tinyurl.com/cs9uvh, it's in Section 3b, last two sentences.
There is not a way to automate this in QuickBooks, but here are two invoice solutions:
1) Change your tax rate to be 20% less (thanks for the tip Candy B.), or
2) Create three line items: 1) Taxable amount (80%), 2) Tax, 3) Non-taxable amount (20%).
Hope this information is helpful!