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Tax rate not updating at checkout


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We are running the latest prestashop ( The tax rate at the checkout doesn't seem to be updating. I've set up the VAT rule to united kingdom and set the VAT of 20%. I've also setup the tax to be based on the shipping address. When I test at the checkout, the VAT is always set to 0 even till I reach till the end of the process. 

I am under the impression that the tax in the cart automatically updates based on shipping address, rather than the fixed tax rate field in each product?


Anyone can shed some light on this?

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