I am working on setting up my first Magento Store. While setting up tax rates I am stuck at setting Shipping Tax rate. Tax class for shipping is set to "Shipping" tax class. I do not have a clue where to define the rate of tax applicable on Shipping. I tried to learn about it in Magento CE Manual but no substantial information is found. The tax rate to be defined for shipping is fixed at 14.5% but don't how to define a rule for tax on shipping.
Check Configuration / Sales / Shipping Methods select Table Rate method.
Once there change the scope of configuration to your desired website (Configuration option is website based) and you will see inputs to export Rates per country (Export CSV button), you can modify those and import again using same interface.
In the Admin menu, select Sales > Tax > Product Tax Class and edit the class you choose or create a new one. Hope this helps!