zero-rate [zeer-oh-reyt] verb (used with object), ze·ro-rat·ed, ze·ro-rat·ing. Chiefly British.
- to exempt (merchandise or services) from value-added tax.
British Dictionary definitions for zero-rated zero-rated adjective (zero rated when postpositive)
- denoting goods on which the buyer pays no value-added tax although the seller can claim back any tax he has paid