What is a zero rated VAT delivery rate?
A zero rated delivery rate, also known as a vat exclusive delivery rate, is a delivery rate available for your customers that does not attract VAT.
Under certain circumstances, some delivery charges don't attract VAT. You can read more about this on the gov.uk website at https://www.gov.uk/guidance/vat-on-postage-delivery-and-direct-marketing-notice-70024
If you have told our system that you are VAT registered then when you are adding/editing a delivery rate you'll see a box asking you whether the delivery rate is zero rated.
If you tick this box then the delivery rate will be set as a 'zero rated' delivery rate and will not attract any VAT. The price entered by you will be the price that the customer pays for delivery.