A new VAT code, "Out of Scope", to be configured at both the Company and Client levels.

When selected, this VAT code will automatically apply a 0% VAT rate, and the relevant transactions will be treated as tax exempt. This will be clearly reflected on both Purchase Invoices and Sales Invoices, where the VAT amount will show as 0%, with an indication that the item is out of scope for VAT.

Additionally, these transactions will be reported accordingly in VAT reports, ensuring accurate representation of 0% VAT activity and compliance with relevant reporting standards.