Tax configuration can be cumbersome in WooCommerce so we've done everything we can to make it easier for you.
Basic Tax Settings
All WooCart stores come preconfigured with standard, reduced, and zero rates for the country you selected in the Wizard (field Business registered in).
The country selected in the Wizard is also set under Store address in WooCommerce.
The tax calculation is set as Shop base address in WooCommerce.
These settings are valid for B2C sales for standard products.
Other Tax Configurations
For non-standard use cases, we recommend installing our Better Tax Handling plugin.
These are the options the plugin supports:
B2C Sales for Digital Goods (EU)
Digital products or goods are a special tax class in the EU. If you're based in the EU or sell digital products into the EU, you need to charge the customer's country standard VAT rate.
B2C Sales for Distance Selling (EU)
If you sell over a specific sales amount in an EU country, you are liable to register for VAT. In this case, you need to charge the local customers their country's VAT rates.
B2B Sales (EU stores)
If you sell to businesses, different rules apply for taxes. EU stores do not charge VAT when selling to businesses anywhere in the world, with a valid VAT ID required for EU businesses.
B2B Sales (non-EU stores)
Businesses outside the EU usually also do not charge tax to other businesses. There are exceptions and the plugin supports configuration for those.
All of the above options are preconfigured in the plugin for EU and non-EU stores. For more information please read the plugin readme file.