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You may set up State, Provincial and Country wide taxes in this section.
Click here to learn how to Limit Where Orders Come From.

If you need to add new countries, simply go to the bottom of the page.
Choose the appropriate country from the 'Add Country' drop down menu, enter
the appropriate tax rate in the field provided (in this case, we have
entered 7.5 for 7.5%). There is a field provided to give the tax a special
name (in this case, we have entered GST for Goods and Service Tax). Click
the 'Add' Button.
Once you have done this, you will see that the country is added to the
State/Province/Country list.

We have checked the 'Tax on Shipping' because the tax is a Goods and
Service Tax. You will need to check with your local government concerning
apporpriate tax rates for your County, State and Country.
Once you have added a new country, you will likely need to add new
States/Provinces and/or Counties. You can do this at the bottom of the page.

In the example above, we have added the Canadian Province Ontario. We
have set the tax rate to 8, representing 8 %. Then we click add.
Once you have clicked 'Add' it will be added to the list. The
States/Province and Counties are ordered Alphabetically by Country.

As you can see, ONTARIO is added to the top of the list and the Parent
Country is set to *None* by default. We must, therefore Select from the 2
countries added; we obviously choose CANADA and will then click Update.
Customers will now be able to choose the Canadian Province Ontario from
the State/Province menu upon checkout and can select Canada as a valid
country.

Limiting Where Orders Come From.
At the bottom of the page is a check box. If you deselect this box and
click 'Save Value' customers will only be able to create accounts with
billing and/or shipping addresses from countries you have established. The
United States of America is the only country set up in the shop by default.

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