Well one of the "Dark Arts" is setting up tax rates. It is not that difficult you just need to know your tax laws and how OSC works.
Remember you only need to charge VAT, if you are registered with HRMC and fill in one of those pesky forms every month or quarter.
Let us assume you charge 20.00% on certain products being delivered to France, Germany and the UK. In reality there are a few more countries but hey-ho.
Go to Localization >> Tax Zones.
Click on Insert and enter "UK VAT / VAT Zone".
Click on the folder icon of the Zone created and you get presnted with a blank list. Use the insert button to insert the UK, France and Germany, selecting all zones each time.
Now click on Localization >> Tax Rates and then click on New Tax Rate.
Now Choose "Taxable Goods" & "UK VAT", enter the current tax rate 20.00%.
Also enter the description you want to see on the invoice such as "Tax at 20%" and a priority of 1.
Now when you add a product to your catalog ensure the Tax Class is set to Taxable Goods and if the order is delivered to the UK, France or Germany, VAT will be charged.
For and upto date list of countries that you should charge VAT if you deliver goods there please refer to the HRMC web site:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000159&propertyType=document#P94_10193
9. Fiscal (VAT) Territory Of The European Community
9.1 Countries and territories within the EC fiscal (VAT) area
The following countries and territories are within the EC fiscal (VAT) area:
Austria
Belgium
Cyprus*
The Czech Republic
Denmark, except the Faroe Islands and Greenland
Estonia
Finland
France, including Monaco
Germany, except Busingen and the Isle of Heligoland
Greece
Hungary
The Republic of Ireland
Italy, except the communes of Livigno and Campione d�Italia and the Italian waters of Lake Lugano
Latvia
Lithuania
Luxembourg
Malta
The Netherlands
Poland
Portugal, including the Azores and Madeira
The Slovak Republic
Slovenia
Spain, including the Balearic Islands but excluding Ceuta and Melilla
Sweden
United Kingdom and the Isle of Man
*The European Commission has advised that the application of the 6th VAT Directive (Directive 77/388/EEC of 17 May 1977) shall be suspended in those areas of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control. Eligible goods to entitled customers going to these destinations may be sold under this scheme.
9.2 Countries and territories outside the EC fiscal (VAT) area
The following countries and territories are outside the EC fiscal (VAT) area:
The Channel Islands
Andorra
San Marino
The Aland Islands
The Canary Islands
The overseas departments of France (Guadeloupe, Martinique, R�union, St Pierre and Miquelon and French Guiana)
Mount Athos
Gibraltar
The Vatican City