You might need to collect the appropriate country or state/province tax for the products you wish to sell. You can specify the tax rate to charge based on the customer's shipping address. You also have the option to choose if your taxes are calculated on the order Subtotal or if they are Inclusive. (Please Note: This varies on Tax Laws for your Country)
To Add a Tax Rate:
Option One: Taxes Calculated on Order Subtotal
1. Go to Store > Taxes, and click on Add Tax Rate.
2. Select a country you would like to charge taxes for on your products. Optional: You can specify a country-wide rate, or leave it blank.
3. You can also add a tax rate for specific states or provinces. Click on the Country you'd like to add a sub-region tax rate for.
4. You can choose to charge sub-region rate ONLY, or ON TOP of the country wide rate you have entered earlier.
5. For both country and state/province rates, you are able to choose whether to charge tax on shipping as well.
Option Two: Taxes Included in Price
1. Follow the above instructions when setting up your Tax Rates. Once you have set up the specific Tax Rates you can now go into Settings
2. From here you will be able to select to have your prices include tax by selecting the "All my prices include tax" option. You can also enter your VAT Number, which will be displayed on your invoices.
Please Note: If you've selected to have your prices include taxes, you will need to reflect this in your prices.
3. Your Shipping and Digital Tax settings will now be remitted by the Country settings.