If any inventory items on your account shouldn’t be taxed, the corresponding Inventory Category can be set as VAT Exempt. Navigate to the Categories option from the Admin menu. Add a new inventory category to update or select one of the existing inventory categories.
Step 1: Select the VAT Exempt check box for the inventory category:
Step 2: Select the save button:
Any inventory items (linked to the category) added to a job will be vat exempt, no vat will be applied to the inventory lines on reports.
