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version:  Odoo 9

Issue:  How to set different VAT options for one customer in Odoo please? So then they may be able to select which VAT for a sales order? 

A customer can either be VAT 12% or VAT Exempt 0%

I have read fiscal position is the key but I am not sure how it works. Please help me.  

Any help is greatly appreciated. Thank you. 

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Fiscal positions - they are doing what you expect!

In the documentation you will find a few examples. See: Using fiscal position

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