No, that setting determines whether customers get charged tax or not based on their shipping country.
As I explained earlier in the thread, with the hidden geolocation setting switched on - Shopify would show prices with VAT removed to customers it thought wouldn’t pay it, before they had entered their shipping address. In other words - a customer based in the USA landing on my UK website would see prices with VAT removed on the PDP and collection pages (everywhere a price is shown), before they’ve even said they want to ship their order to the USA.
This hidden setting controls the presentation of prices, not the actual price quoted once the customer has specified a shipping address in the cart (which is controlled by the setting you mentioned).
In essence, what I wanted to achieve was to stop Shopify deciding itself what prices to show customers, instead I wanted customers (and Google) worldwide to see the same prices on the website until they had provided a shipping address, at which point VAT would be removed. This ensures a consistent experience, and fixes my issue with Google Merchant Centre complaining about the displayed website prices being different to the feed prices, which was my problem all along.