Set tax in Settings › Delivery and tax.
- A fixed rate, with prices shown with or without tax.
- Or automatic tax with Stripe (Settings › Payments), which works out the tax from the shopper's address. It needs Stripe Tax turned on in your Stripe account.
Invoices and credit notes show the tax split. Reports and Finances show tax separately from sales.
Business buyers in the EU
On an EU store that charges VAT, a business in another EU country can add its VAT number at checkout (Buying for a business?). When the EU register (VIES) confirms the number, the order is "reverse charge": no VAT is charged and the invoice shows the buyer's VAT number and the legal note. A number from your own country, a wrong one, or VIES not answering means VAT as usual.
With Stripe automatic tax, Stripe asks for and checks the VAT number itself.