Tax Code Discrepancy – Contract vs. AR Invoice

Hi Team,

For contracts source AR invoice #2025XXXXXXX, the user manually selected the existing tax classification code "IT OUT STANDARD" on the Contracts page. However, when the AR invoice was generated, the system applied "IT OUT EU SERVICES" instead.

The Billing Customer is located in Ireland, while the Ship-to location is within Italy. It appears the system applied the Bill-from Point of Sale (POS) rule, which led to the VAT exemption.

Could anyone please advise whether the system should honor the manually selected tax classification code in such cases?

Any suggestions or insights would be greatly appreciated.

Regards
Pavan