Here you can specify a VAT business posting group for the vendor. To see the VAT business posting groups in the VAT Business Posting Groups window, click the AssistButton in the field.
The code specifies to which VAT business posting group this particular vendor belongs.
When you post transactions that involve this vendor, the program uses this code in combination with a VAT product posting group code to find the the VAT %, the VAT calculation type and the VAT accounts in the VAT Posting Setup window.