Customers with Invoices at 0 VAT and no VAT Registration Number Report

Hello, when running the Customers with Invoices at 0 VAT and no VAT Registration Number customers are appearing even though the site associated with the invoice has a tax registration number associated with it. In testing, the customer was removed from the list when the VAT registration was added at the Party level on the Tax Profile tab. Shouldn't this report look to the site level first and then to the party level for a registration number? What is the reasoning for only looking at the party tax profile?

Thank you

Oracle EBS 12.1.3