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Store is run from AUST with 10% GST added. When a customer from NZ selects NZ$ as the currency then adds to cart the AUST GST of 10% is still being applied. Despite the fact that NZ is set in the tax settings as no GST. Is there something that needs to be set for this to not happen?
Have you chosen to include tax in your product prices?
If so, the price doesn't get reduced outside of Australia as you've opted to include tax in the price vs calculating it automatically at checkout.