Apply VAT 7% on shipping and products

Question

I'm a bit confused with displaying VAT on shopping cart. I've tied to set up a 7% VAT (on porducts and shipping) but my Grant total including tax is still equal to grand total excluding tax.

I've created a 7% VAT rule in Sales > Manage tax and zone rules I've also tried to define the most appropriate setting in Configuration > Sales > Tax ... but no result.

Answer 1

Checkout our knowledge base on setting up VAT tax in Magento (link).

In general you need to:

1. Create a tax rate ( 7% ; YOUR COUNTRY )
2. Create a tax rule ( linking #1 with product & customer tax classes )
3. Ensure your products have the product tax class that you're using in #2
4. Update tax configuration ( per linked docs ).