Magento Open Source, 1.9.x

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In this section of the guide, you’ll learn how to set up taxes according to the requirements of your locale. You can create tax classes for products and customer groups, and tax rules that combine product and customer classes, tax zones, and rates. In addition, you'll learn more advanced topics such as setting up fixed product taxes, compound taxes, and how to display consistent prices across international borders. If you’re required to collect a value-added tax, you can set up your store to automatically calculate the appropriate amount with validation.

Tax in Checkout Totals