1. Go to Store Settings >> Taxes. In the section Tax Names, set two taxes: VAT (check included into product price) and VAT adjustment.
2. Go to the Tax Display Options section. For displayed text "VAT:" set the tax "VAT+VAT adjustment" (see the picture below) by clicking the Add button. For the tax VAT adjustment select “never display”. VAT adjustment is used only to adjust taxes for shipping and handling charges and discounts, and is not visible at checkout.
3. Now, go to the section Tax Rates. Product Tax Class - Taxable and set up taxes as shown below:
4. Also in the tax setting section (use the Tax Settings button at Store Settings >> Taxes), set "Display product prices including taxes" to YES as shown below.
Finally, your tax page should look similar to this:
IMPORTANT! This explanation is only an example, and tax values and rates may change over time. To determine the exact tax rates and tax formulas in your case, please consult your accountant.
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