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Under System Preferences > Network > VPN > Advanced > Options I can choose to "Send all traffic over VPN connection".

Contrariwise, this would mean that if this option is not enabled (which is default) some traffic is treated as if no VPN connection was established: e.g. The IP address when surfing is still the same.

What traffic is (not) sent over VPN when this option is disabled?

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This really depends on the routes your VPN server is pushing when you connect. It could push only routes to private networks or it could push a route for the default gateway.

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If you're using Windows PPTP VPN, all traffic will be routed through the VPN by default. Your computer becomes literally a part of your office network just like you were at work.

If you don't want that, going to the advanced TCP/IP properties and disabling Use Default Gateway on Remote Network will change the routing of your internet traffic. You'll still be able to access your office network, but then internet traffic will go to your network card's default gateway locally (just like you were not connected to the VPN).

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This is the Ask Different exchange, and your answer whilst technically correct applies to the Windows IP stack settings not those in iOS which the OP is asking about – Kevin Feb 7 '12 at 10:50

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