Provincial Tax from USA to Canada

Hi Everyone,

I am actually implementing VAT first time. I was able to setup provincial tax from USA to USA successfully(VAT is getting calculated just fine when we are using "calculate provincial tax" action).

The problem i am facing is when we have a shipment going from USA to Canada and we want to apply Provincial tax based on shipment destination.
When i am using "calculate provincial tax" - VAT is getting applied on shipment but VAT amount is calculated as 0.

I can share all the necessary information based on someones response. But it would be really kind if someone with experience may give some directions.

Thanks,
Piyush Tamrakar