I would like to start a discussion around how to use the Magento Tax module to handle VAT. The tax module seems quite flexible, but it would be nice to develop a step-by-step guide to configuring for a South African context.
For example, it looks like by default Shipping does not have any tax, because in the US sales tax applies to products and not services (as far as I know).
It is tempting to leave out VAT and tax altogether and just ignore the issue, but even the most local South African store will still occasionally ship something to Swaziland or Namibia, and that will require the invoicing to display correctly.