I have a setup where I need to tax UK and EU countries t 17.5% all others at 0%

Setup is currently
Tax by country and state
All prices excluding tax
tax based on billing address
Shipping taxable

Tax by Country and state
United Kingdom * * Products 17.5000
(other eu countries the same)
nothing for non eu countries

When I checkout it doesn't calculate tax - sets it as zero
If I change to fixed rate tax all is fine

Help!
Thanks
Andrew