We are currently trying to deploy a workaround for the inability to flag an item as tax exempt within Ariba. Our solution is a 0% tax rate. However, we are curious to know what other companies have done to handle tax exempt items. Also whether or not an enhancement request has been logged for this capability?
For lines with tax category VAT, Ariba allows suppliers to specify the word “Exempt” for an invoice line that is exempt. The supplier also needs to give the reason when the Tax Rate for an invoice line with a tax category of VAT is set to zero percent. Hope this helps.