No location by default setting not working

Hello,

I’m experiencing an issue with Woocommerce plugin, this is about taxes. Vat is added based on “Shop base” even when “No location by default” is selected.
Below my settings:

– General > Default customer location > No location by default
– General > Enable taxes > checked

– Tax > Prices entered with tax > No
– Tax > Calculate tax based on > Customer billing address
– Tax > Display prices in the shop > Excluding
– Tax > Display prices during cart and checkout > Excluding

With these settings I was hoping that my customers would see a price not inclusive of VAT in my shop (https://www.marcograssiphotography.com/tutorials/). And I was hoping they would not see it in the cart either. My intention was for them to see it only once they added their billing address at checkout, since I want VAT to be calculated based on billing address.

However, it appears that in the cart, Woocommerce already adds a standard 20% Estonia VAT rate (which is where my shop is based, even if we’re talking about digital products here).

I have tried to clear the cache multiple times, I have checked this on different devices and it always adds 20% EE Vat in the cart, until I go to check out and put a different country.

How can I fix this?

Best,
Jessica