UK Sales Tax (VAT)
VAT is calculated on line level subtotal, rounded to 2 decimals.
i.e.
rounded to 2 decimals (Net Price x Quantity x VAT rate) / 100
Example:
14.26 x 4 x 20 / 100 = 11.408 , rounded to 2 decimals gives line VAT amount of £11.41
Sales Tax on Export
A country can be have the following Tax classification codes:
H - Home (for the UK this is country code "GB" )
VAT always added.
E - Export , non Europe
No VAT added
M - EU member state
VAT Not added, if Customer has Valid VAT number (requires ERP to support this), maintained on Customer Account, or if part of qualifying process as Trade customer, can be configured to exclude VAT for all customers in Member state countries (as Trade Customer require VAT number to qualify as Trade customer).
see also Countries