What does 'VAT exclusive product' mean?

A VAT exclusive product also known as a zero rated product is a product sold on your website that does not attract VAT.

Most goods and services attract VAT at 20% (if you are VAT registered) but some products, like children's clothes, do not. In these cases you can tell our system that the product is zero rated.

If you have told the system that you are VAT registered then when adding or editing a product, in the 'Product Price' section, next to the price you'll find a 'Custom VAT Rate' field that has a 'free' tick box.

Ticking this box will set the product price as VAT exclusive (and if the product has any variations with different pricing, or product extras, they too will be treated as VAT exclusive).