Zen Cart 1.3.8a Fresh install. GoDaddy is the provider.

I have a UK based shop selling T-shirts and all works fine with UK purchases, the problem I am getting is with european purchases, I get an email from Paypal stating that an item has been bought, but nothing shows up in the shop relating to it.

So there is no record of the sale in the admin panel, and I have no information relating to the product in paypal, I just know that someone has made a purchase, and I have to email them asking what they have bought.

I can't figure out what I haven't turned on/off, please help.