VAT exempt Customers

[ackerman]

Would this work.........

On our site we use this to exempt VAT for Channel Island customers.

Waggers

I am sorry, but the Channel Islands are not exempt, they are zero rated. The vat (at 0%) has to be accounted for on the vat returns.
The difference is that on exempt supplies you cannot claim back any vat on the suppliers element.
My understanding is that some goods may be "exempt" from vat, and the customers vat standing is irrelevant. This means you can simply create a tax code for these products.
I think your customer needs to be more accurate in their requirements before you go too far in trying to design a site for them.