Tax Classification Code on event type not being applied to the generated prepayment invoice

Summary:

We have configured a new billing Event Type, flagged it for Prepayment Request, and linked it to a Tax Classification Code for a specific BU. When we generate a project invoice from an event with this Event Type, the tax code from the event type is not used, and standard tax is calculated instead.

Is this being overridden by the tax engine?

Note, we have not specified a tax classification code on the contract/line.

Thanks in advance for your help and advice.

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