Place of supply rule for a specific tax code based on country

Summary:

I have configured a Tax rule to use a specific tax code based on country. I have configured a Tax Determining Factor set for Bill From country and a Tax Condition Set for Bill From country not equal to Australia. I setup a Place of Supply Rule with a Result set to Bill To using the Factor Set and Condition Set. Finally I set up a Tax Rate Rule to say pick up Zero rate tax code for the Place of Supply Rule. However when I enter a Payables Invoice for a supplier from China, the zero rate tax code