Each product can have a tax assigned to it. A tax can have a separate description and rate within each region. For example, if you are based in the United Kingdom and sell solar panels then you need to charge VAT at the reduced rate of 5% when selling within the European Union VAT area. You would assign the VAT: reduced-rated tax, which has a rate of 5% within the European Union VAT Area region and a rate of 0% everywhere else.
You can configure tax rates by clicking Configuration in the shop management panel menu and then clicking Tax rates to view the tax list.
The tax list initially shows all of the taxes in your shop. The drop-down field above the list lets you filter it to show only taxes that are or are not used by products in your shop. You can click on the column headers to sort by any column.
To create a tax click Create new tax and then edit it in the same way as described below.
To edit a tax, click Details on the corresponding row in the tax list. The tax rates form will be displayed, letting you change the tax name (as displayed in the shop management panel) and set up rates for each region. For each region you can change the following settings:
If a country is in multiple regions, the tax rates from all of the regions containing the country will be charged. In some cases this is what you require — for example, if you need to charge VAT within the EU but also charge an additional tax just within your country. If this is not what you require, you should remove the country from its original region after adding it to its new region.