VAT is Value Added Tax charged on Products and Shipping. But many countries offers VAT exemption to a specific category of citizens and some specific list of products which comes under Tax regimes. e.g. Medical equipments, Equipments for disable customers.
VAT(Value Added Tax) Exempt is very helpful for the store owners from countries which have VAT tax exemption eligibility. e.g. UK, Ireland, Malta, Bahamas etc.
Magento® Editions Compatible:
Community Edition: 1.7.x, 1.8.x, 1.9.x
VAT Exempt Module also available for Magento 2