VAT Code selection in Dept-VAT Maintenance

I have a question regarding the selection of VAT codes when we select VAT maintenance as part of the Department creation. When I select the VAT region for a department , only "S"tandard  VAT code is displayed in the list of VAT Codes irrespective of the VAT Type I select.

Steps:

1. Select Actions->Merchandise Hierarchy

2. Select Department -> New

3. Enter all the required information

4. Go to Options -> Vat maintenance

5. Add VAT region 1000,

6. Select VAT Type(Both or Cost or Retail)

7. Click on the VAT Codes LOV, the VAT codes available in the List of VAT codes is only  'S' (Standard)