Tax exempt items getting tax added in sales orders

Hi there,

Not sure if I'm missing something obvious but I have a customer who sells a number of items that are exempt from Tax (VAT). These items have a TAX Code of X0 (0%) exempt under the Sales Data tab in the item master data record.

For some reason when they create a sales order with these items, tax is still being added to the item(s)

Can anyone please advise?

Regards

Steve Lowery