tax rule not working - using defaults only?

I have an issue with a tax rule that I think might be geography related?? The tax rule should work if the "Bill From Party" is "Registered in the EU (but not in Germany)". I have setup a UK supplier with a UK address and registration status as being "Registered".  When I process an AP invoice the tax rule to determine the Tax Status is not kicking in?

[Registration - Bill from party - Registration Status - equal to - Registered in EU (Non DE)]

Any suggestions?  Very much appreciated.