To create your taxes such as VAT, GST, or any other.
Go to Store > Settings > Taxes > Add Country
From that pop-up, you can now start creating your tax rules by country/states. When the rule is met, the order will assign the Tax to the total amount for payment.
Note: You can enable multiple variations to suit your business requirements.
Similar to setting up your shipping options, taxes are configured pretty much the same way.
Set your Country
Tax name
Tax type
Tax amount