Configuring Value Added Tax (VAT) from Magento 2 backend is a great solution in order to solve the conflict of the different VAT calculations, namely the store is located at different stages and the type of goods you provide are products, materials, or services. With VAT functionailty, you can create the data management table that contains your country, VAT rate, customer types, and so on.
Therefore, today, I want to show you all steps to configure and apply the VAT quickly on your Magento 2 store.
Stores > Taxes > Tax Zones and Rates.
Add Newto add it.
Stores > Tax > Product Tax Classes.
Add Newbutton and create three new classes:
Save Classbutton for each new class that you add.
Stores > Tax > Manage Tax Zones & Rates.
Add New Tax Ratebutton and complete all necessary information as needed.
Save Rateto apply the new rate.
A tax rule is a combination of a customer tax class, a product tax class, and a tax rate.
Stores > Tax > Manage Tax Rules.
Save Ruleto apply the new rule.
Products > Products > Catalog.
Tax Classto VAT Class that applies to the product.
Ref: Magento 2 User Guide
It comes to the end of tutorial: How to Configure Value Added Tax (VAT) in Magento 2.
Want to apply these above Invoice templates for your store?