You can configure your tax settings by clicking Configuration in the shop management panel menu and then clicking Tax settings.
Editing, basket, and checkout
These settings affect the shop management panel, the basket, and the checkout process:
Edit and display places
For shops selling to the general public, you should usually choose Including tax. For shops selling to businesses, you should choose Excluding tax. When editing products, prices are entered as they will be displayed in the basket and checkout — including or excluding tax as appropriate. Tax will itemised be separately in the basket and checkout if it is not included in prices.
Category and product pages
These settings affect category and product pages:
Whether to display prices including tax (gross), excluding tax (net), or both gross and net. This setting has no effect on products that are exempt from tax; for these products, the bare price (for example, £10) will be shown.
Gross price template
The template for gross prices. The template can include various special strings, listed below the text field, which are substituted with the relevant details. For example, a template of [price] inc. [tax name] could result in £12.00 inc. VAT.
Net price template
The template for net prices. The template can include various special strings, listed below the text field, which are substituted with the relevant details. For example, a template of [price] exc. [tax name] could result in £10.00 exc. VAT.