Subject to no value-added tax when sold (but the supplier can still recover VAT attributable to it)(adjective)
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Use "zero-rated" in a sentence
"All these are either exempt, zero-rated, or rated at 5%, and for most families are more representative of imperative outgoings than the occasional new car."
"Second, since children's clothing is zero-rated, what fits into that category?"
"Get your "sweetened dried fruit" deemed to be "held out for sale as snacking and home baking" and your product will bear a tax and have to compete on grocers 'shelves with zero-rated "sweetened dried fruit held out for sale as confectionary/snacking.""