1. Open your shop in ShopFactory -> click Central dropdown (Properties) => Taxes from the menu
2. Follow the steps in the diagram below from 1 through 5
3. On the next window it shows the tax and the countries it applies to. It will show Prices include tax which applies to the European union (however there are exceptions)
- Tick "Prices include this Tax" checkbox
4. Click the Finish button
5. Tick "Apply tax on products to shipping and handling charges" unless you specifically do not want tax to apply on shipping (always check with your tax office or accountant if you are unsure)
6. Tax will apply to the EU and no Tax will apply to any regions outside the European Union. So for for example, Tax will apply to Germany but will not apply to Australia. ShopFactory does this automatically at checkout for you.