That is working to do what you told it to do "Insert a tab after the the last character in paragraph 1. If you want it at the end of the "current" paragraph then you can use:
Code:
Sub ScratchMacro()
'A basic Word Macro coded by Gregory K. Maxey
Selection.Paragraphs(1).Range.InsertAfter vbTab
lbl_Exit:
Exit Sub
End Sub
By the way, you don't ever have to use:
"With Active Document
...
End With
Especially when you are only doing one thing. Simply use:
ActiveDocument.Paragraphs(1).Range.InsertAfter vbTab