“Thanks for your patience. I have tested the flow several times and duplicated the issue you are encountering. This has been escalated, and is at this time a known issue which our engineers have attached priority to, and are now seeking a resolution. I am putting this ticket in a pending fix status in order to inform you when the issue has been resolved.”

This was three weeks ago and they haven’t got back to me yet although the last service payment received did have the VAT element added.

Correct me if I’m wrong but can VAT settings not be changed in your profile area on the PayPal website?

As far as the rest goes, I entirely agree with you!