Troubleshooting tax issues includes the following ...
1. What are your store settings for these set to?Admin->Configuration->My Store
a. Country/Zone
b. Basis of Product Tax
c. Basis of Shipping Tax
d. Display Prices With Tax
e. Display Prices With Tax-Admin
2. What Zone Definitions have you created?
Admin->Locations/Taxes->Zones Definitions
3. Inside each of those zone definitions, what country/zone combinations have been selected?
Admin->Locations/Taxes->Zones Definitions, click on "Details" button for each zone
4. What tax classes do you have?
Admin->Locations/Taxes->Tax Classes
5. What tax rates have you created?
Admin->Locations/Taxes->Tax Rates
6. What tax class have you associated with your products?
Admin->Catalog->Categories/Products->click on a product to edit it
7. What tax class have you associated with each of your shipping modules?
Admin->Modules->Shipping
