Some supplies of goods and services are outside the scope of VAT. For such transactions the entity must provide reasons for applying this taxation option.
To open the list of reasons defined in the system, go to Taxes > Master Data > Out-of-Scope VAT Reasons.
To this list, you can add any valid reason why the supplies should not be subject to VAT.
The Out-of-Scope VAT Reasons list
The reasons specified here will be available for selection in the documents where it is applicable.
Click the Create button to add a new reason for transactions that are out of the VAT scope.