Hi,
Thanks for your reply.
"Type of address used for tax" simple specifies if the billing address or the shipping address is used for TAX purposes, it does not determain if VAT should be charged if the "Company" name field is filled on not. It doesn't matter wich setting "Type of address used for tax" is on the issue still occurs.
I understand that both individual and company accounts are very similar, however, would it not be better to have a drop down "Individual or Company" rather than expecting companies to fill out their company name?