What is tax FollowUP?

Let's say you want to apply VAT for customers from Country X, and NO vat for others;

In this case, go to Admin > System > Localisation > Geo Zones and add a new zone like this:
- name: MyZoneX
- description: some description
- countries: here add your country (or countries) where you plan to add VAT.
SAVE

Go to System > Localisation > Taxes > Tax Rates > find VAT > edit ( By default VAT tax is available - if is not available you can add it)
- tax name: VAT (or how you want to call it)
- tax rate: 5 or 10 or value you want (5 = 5% VAT)
- type: percentage
- customer group: here select customer group(s) where you want to apply this tax (Business, Private - assuming you have these 2 groups of customers)
- Geo Zone: select geo zone "MyZoneX" defined in the previous step

Please notice: while the customer is not logged, the platform doesn't have (by default) to know if the customer is from country X or Y or from customer group Z. So in that case, you should disable Guest checkout, to force them to firstly login/create an account.

Wish you many sales!