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My shop's origin country is Germany. So my client wants a scenario If the shipping address is within Germany the VAT will be inclusive of the price. and the shipping address is outside Germany it should excluded the tax. So I request to provide me a solution how the tax rules gets managed and I am already created two store views for English and German.

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You could do it by only allowing shipping to Germany in the German store vie (System > Configuration > Sales > Shipping Methods > Ship to applicable countries : "Specific Countries" and just below, select only Germany).

Then, you set the tax settings (in System > Configuration > Sales > Tax) to include the tax price on the German store view, and not on the English store view.

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