Sales Tax Analysis Report Tax Exempt Problem

I have a strange problem with the sales tax analysis report.

Background/Settings: On a VAT system, some items are taxable, some not. Assign tax tables by item NO customers are set to tax exempt Items are either assined Item Tax VAT or

I ran sales tax analysis report, and my numbers do not make sense.

Here is what the report looks like for a monthly timeframe (figures rounded):

TaxCode Tax authority Total Sales Taxable Sales Tax Exempt Non Tax Tax Co N/A Non-Taxable 138,188 0 0 28.661 0 VAT VAT 138,188 90,326 5,652 42,210 13,548

First problem is that I can't figure out what the N/A Tax Code is for. The

Second, the Tax Exempt column does not make sense. I was able to confirm that this number corresponds to total sales of an item I call MISC, but that item has VAT as the assigned item tax. I confirmed that when this item is used, VAT is deducted from the total and there is a correct entry in the TransactionEntry table. I can't figure out for the life of me why those sales would show up in the Tax Exempt column.

I was able to confirm that the 138,188 and 42,210 are correct. In a VAT system, the difference should be the Taxable Sales (Sales including VAT).

This report does not seem to work right. Any ideas?