The ‘Settings > Taxes’ section makes it possible to create pre-set taxes to apply to products. Consult with an accountant and/or a lawyer if you are unsure what to do or need more information before selling your products.
To create custom tax profiles, click the ‘+ Add a tax profile’ button and enter the details in the tax profile form, including the tax name, the percentage value and the exclusion percentage value (i.e. the rate applied if an item is purchased by someone in a country not selected in this tax profile). If you want to set this profile as the main tax setting for your shop, select it and it will be applied by default to all new products that you add to your catalogue.
You can set your invoicing preferences from the 'settings' button.
In the 'valid for the following countries' section, you can select which countries this tax rate will be applied to. If the purchase comes from a state that isn't included here, the exclusion rate for this tax profile will be applied automatically.
Once the tax settings are saved, you can easily associate them to your products within the product sheet.