Tax rule question

Tax oddity! I just did a routine "paid subscription test", signed up a new test user (with imaginary address in USA) and subscribed them to one of our paid subscriptions. Paid using a credit card. User was billed taxes! Shouldn't have been, really ( we do not charge tax to US clients) ...

According to the Paypal payment item, "The sender of this payment is not verified and is located outside the US."

Yes, the credit card used was from a bank outside the USA (in a country covered by our tax rules) and I was in the same country doing the test account ( so, Geo-IP would have detected it).

However, the user put in a USA address - shouldn't that address information over-ride which bank card was used, and the physical location of the user when they happened to be making the payment? Based on the location of the user and the credit card, yes the tax was billed correctly. But what if a US client happens to sign up while travelling outside the USA, and for whatever reason uses someone else's credit card for convenience?

Just curious...

Are you sure CBSubs taxed them? Did you see the tax line in the basket before selecting a payment method? Sounds like the tax/fee came from PayPal it self, which CBSubs has no control over and is based off the card location I believe.

shouldn't that address information over-ride which bank card was used

No.

The tax line is in the payment basket.

Ok, then it's coming from CBSubs. CBSubs uses the invoice address to determine if tax should apply. Within your Tax Rate in CBSubs > Tax you should just need to adjust "Geographic Zone of Buyer". If you don't see the geographic zone you want it to apply to then within Geographic Zones in CBSubs > Tax be sure to add the geographic zone you're needing. Be sure to cancel the basket between tests.

All of our tax rates are already set up with correct geographical zones. This user supplied a country outside of those zones.
I don't recall seeing this ever before, (or since!) - users from that country (or any country outside our own) never pay tax.

Looks like it applied your first tax rule to them and is the only one with a seller geographic location specified and maybe why the tax rule was applied since you are the seller. Only other reason I can think of is "Default Customer Country", "Default Customer State / Province", and/or "Default Buyer Zip Code" were specified within CBSubs > Settings > Tax that maybe causing it.