What is VAT exempt in SAP SBO - SAP Business One?

SAP Term: VAT exempt

• Component: SBO

• Component Name: SAP Business One

• Description: Describes items for which value-added tax must not be paid.

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• Key Concepts: 
  VAT exempt is a feature in SAP Business One (SBO) that allows businesses to exempt certain customers from paying Value Added Tax (VAT). This feature is useful for businesses that have customers who are exempt from paying VAT, such as government entities or non-profit organizations. 
  
  How to use it: 
  In order to use the VAT exempt feature in SBO, you must first set up a customer as a VAT exempt customer. This can be done by going to the Customer Master Data window and selecting the “VAT Exempt” checkbox. Once this is done, any transactions with this customer will be exempt from VAT. 
  
  Tips & Tricks: 
  It is important to note that the VAT exempt feature only applies to customers who are exempt from paying VAT. If a customer is not exempt from paying VAT, then the VAT exempt feature will not apply and the customer will still be required to pay VAT on their transactions. 
  
  Related Information: 
  For more information on how to use the VAT exempt feature in SBO, please refer to the SAP Business One User Guide. Additionally, you can find more information about Value Added Tax (VAT) and how it applies to businesses on the official website of your local tax authority.