Once you are in the Settings area, the Tax will be shown on the bottom left side of the page. Click Settings > Tax to open the tax page. Click on ‘Add tax rate’ to set a tax for your products.
You can only add a tax rate for countries that you ship to. Select the country in this step.
A single rate of tax will apply to all items in your store. If you are in Europe and the goods you sell are subject to VAT you could set the tax rate to match the VAT rate.
Note: You should always check with an appropriately certified tax professional to ensure compliance with local regulation.