Rebate settlements should not hit the VAT account

Hello everyone,

There is a question on Rebate Settlement.

There is a customer who is entitled to a 15% BPR rebate.
 

We are accruing for this rebate successfully
 
The issue we are having is that the materials that this customer buy from us attract 20% VAT but when the customer claims back from us they do not claim the VAT component.
 

We need to  be able to do rebate settlements that do not hit the VAT account.
 
I ran a test in SAP on a sample rebate agreement but the only way I could get the rebate settlement to not hit a VAT account was to change a material to be not liable for tax and then settle against that material.
 

Billing doc 1-Posts to VAT since the material is Tax inclusive

Billing doc 2-Does not posts to VAT since the material is Tax exclusive

Any of you aware of any other way to do this (perhaps using a payment type)??

Kindly suggest,

Regards

Manjunath