On many implementations I work on, the client will often have a ‘ZERO’ rate when in actual fact, they don’t have any zero rated produced under their tax regime. There are only a few exceptions to this, the UK being one of them with a genuine Zero Rate.
The reason why you should not call a rate ‘Zero’ when it is not a zero rated supply is due tot he following statement;
If you sell zero-rated goods or services, you can generally reclaim VAT on any purchases that relate to those sales. This is in contrast to if you sell only exempt goods or services, where you cannot normally reclaim VAT on your purchases – see the section on when VAT mustn’t be charged.
So use exempt, out of scope but not Zero unless your rate genuinely is zero rated.