Thank you M.N - this is amazing. I have tested it today on a few countries and it is working. A lot of people are experiencing trouble with this so I am noting the steps I have taken to help (sorry if they are obvious to some):
1. International - VAT - using country VAT code, enable that tax
2. VAT - TAx Rules - Set up Tax Rules Group (i've just called mine EU VAT)
3. Select the Group - add Tax Rule - add each of the set up countries to this group
4. Catalog - Products - Pricing tab - VAT rule - add the EU VAT rule to each product in your catalog.
Thank you so much. LC