The task to set up taxes can vary widely and is determined mostly by your location, your area of operations and the products you offer in your shop.
The shop offers a multitude of settings to accommodate for almost any tax scenario with tax zones, tax classes, tax rates, tax exceptions and tax rates at product level.
Your tax settings are applied to products, but also to shipping and handling fees.
Depending on your needs, you can either configure your tax settings manually or automatically through a tax service provider.