diff --git a/app/DataMapper/Tax/DE/Rule.php b/app/DataMapper/Tax/DE/Rule.php
index a90cbed240db..b8fa49dad873 100644
--- a/app/DataMapper/Tax/DE/Rule.php
+++ b/app/DataMapper/Tax/DE/Rule.php
@@ -86,18 +86,16 @@ class Rule extends BaseRule implements RuleInterface
         
 
         if ($this->client->is_tax_exempt) {
-            return $this->taxExempt();
-        } elseif ($this->client->company->tax_data->regions->EU->tax_all) {
-            
-            $this->tax_rate1  = $this->vat_rate;
-            $this->tax_name1 = "MwSt.";
 
+            return $this->taxExempt();
+
+        } elseif ($this->client->company->tax_data->regions->EU->tax_all_subregions || $this->client->company->tax_data->regions->EU->subregions->{$this->client_country_code}->apply_tax) {
+
+            $this->taxByType($type);
 
             return $this;
         }
 
-        if ($type) 
-            return $this->taxByType($type);
         
 
         return $this;
@@ -111,9 +109,6 @@ class Rule extends BaseRule implements RuleInterface
             return $this->taxExempt();
         }
 
-        if(!$product_tax_type)
-            return $this;
-
         match($product_tax_type){
             Product::PRODUCT_TYPE_EXEMPT => $this->taxExempt(),
             Product::PRODUCT_TYPE_DIGITAL => $this->taxDigital(),
@@ -146,29 +141,31 @@ class Rule extends BaseRule implements RuleInterface
 
     public function taxDigital(): self
     {
-        $this->tax();
+        // $this->tax();
 
         return $this;
     }
 
     public function taxService(): self
     {
-        $this->tax();
+        // $this->tax();
 
         return $this;
     }
 
     public function taxShipping(): self
     {
-        $this->tax();
+        // $this->tax();
 
         return $this;
     }
 
     public function taxPhysical(): self
     {
-        $this->tax();
+        // $this->tax();
 
+        $this->tax_rate1 = $this->vat_rate;
+        $this->tax_name1 = 'MwSt.';
         return $this;
     }
 
diff --git a/tests/Unit/Tax/EuTaxTest.php b/tests/Unit/Tax/EuTaxTest.php
index f6eae304295b..3743d1adaf51 100644
--- a/tests/Unit/Tax/EuTaxTest.php
+++ b/tests/Unit/Tax/EuTaxTest.php
@@ -53,7 +53,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = true;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -90,6 +90,7 @@ class EuTaxTest extends TestCase
                     'tax_name3' => '',
                     'tax_rate3' => 0,
                     'type_id' => '1',
+                    'tax_id' => 1
                 ],
             ],
             'tax_rate1' => 0,
@@ -116,7 +117,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = true;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -131,6 +132,7 @@ class EuTaxTest extends TestCase
             'country_id' => 56,
             'shipping_country_id' => 56,
             'has_valid_vat_number' => true,
+            'is_tax_exempt' => false,
         ]);
 
         $invoice = Invoice::factory()->create([
@@ -180,7 +182,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = true;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -217,6 +219,7 @@ class EuTaxTest extends TestCase
                     'tax_name3' => '',
                     'tax_rate3' => 0,
                     'type_id' => '1',
+                    'tax_id' => 1,
                 ],
             ],
             'tax_rate1' => 0,
@@ -246,7 +249,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = true;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
         
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -291,7 +294,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = true;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -376,7 +379,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = false;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -418,7 +421,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = false;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -459,7 +462,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = false;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -499,7 +502,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = false;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -540,7 +543,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = false;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
@@ -581,7 +584,7 @@ class EuTaxTest extends TestCase
         $tax_data->seller_region = 'DE';
         $tax_data->seller_subregion = 'DE';
         $tax_data->regions->EU->has_sales_above_threshold = false;
-        $tax_data->regions->EU->tax_all = true;
+        $tax_data->regions->EU->tax_all_subregions = true;
 
         $company = Company::factory()->create([
             'account_id' => $this->account->id,
diff --git a/tests/Unit/Tax/UsTaxTest.php b/tests/Unit/Tax/UsTaxTest.php
index cb181a4a1789..6fae1067d0ed 100644
--- a/tests/Unit/Tax/UsTaxTest.php
+++ b/tests/Unit/Tax/UsTaxTest.php
@@ -203,7 +203,6 @@ class UsTaxTest extends TestCase
         $client->is_tax_exempt = true;
         $client->save();
 
-
         $company = $invoice->company;
         $tax_data = $company->tax_data;