Taxes not calculated on AP Invoice even after selecting tax classification code

I have Netherlands regime under which I have few taxes and tax rates setup.

While entering an AP Invoice for a supplier from Belgium, I'm selecting the tax classification code (which points to tax rate from Netherlands Regime) but the tax is not getting calculated.

However, if I select the same tax classification code for supplier from Netherlands, the tax gets calculated.

Wondering what's the setup that's causing this behavior.