Zero Rated VAT and VAT Exempt are distinct and separate things.

[instanceofjamie]

Looks like Billder's treating FALSE and 0 as the same thing when working out VAT, but they're handled very differently by Xero. We need a case for being able to charge VAT but the VAT rate being 0%.

It seems like they're the same thing, but apparently not so - ask Rebecca, she'll fight and die on this hill ;-)