Chapter 8. Tax
Depending on the type of store, trading location, and volume of sales, you may need to set up sales tax or Value Added Tax rules for your store.
Value added Tax (VAT) is standard in most of the European Union.
The price displayed to the customer must be the final selling price including the VAT.
In other parts of the world, including the USA, sales tax is added at the checkout. This means that prices are displayed throughout the site without tax, and the tax amount is calculated and added to the total during the checkout process.
Drupal Commerce handles both of these scenarios by declaring two tax types, which handle each type of scenario.
