Prism Users Guide - Chapter 5. Taxes
5.3 Tax Methods

Tax method refers to the type of tax system. For example, Sales Tax or VAT. Set the Tax Method at the Subsidiary level in Admin Console > Node Preferences > Taxes > General. Select the desired Tax Method from the drop-down.
Prism supports the following tax methods

• Sales Tax - (United States) Tax is applied to the item price. Default.
• Sales Tax-Multi - (Canada) Both federal and provincial sales taxes are applied to items. 
• Value Added Tax (VAT) - (Many countries including European countries, India, China, Australia, New Zealand, Mexico, South Korea, and Israel) Tax is included in the price.
• VAT-Multi - (selected locations) Multiple VAT rates.
• ICM - An alternative form of VAT used in Brazil.