Unfortunately when we started out on magento our data entry team uses "No Tax" option and put in the "Price" as the RPP inc TAX.
It's becoming a big problem for us now as we want to sell outside Europe and the Tax should be automaticailly removed.
Is there any way/or extension that can allow us to keep adding price inc TAX and then generate tax on shopping cart and invoices?
I am not really sure what exactly your problem is. If your prices were entered incl. VAT, you only need to set a product tax class which applies the VAT rate for the EU country. In the system configuration you can set that entered prices include VAT or not.
If now someone from outside Europe orders, VAT will be removed because there should be no tax rate for this country within the tax rules.
Following is the perfect extension that removes VAT,
zero rated tax amount is also shown in invoices, pdf etc.