How do I add tax to each product in an estimate?

When you create an estimate from Sales → Manage Estimates → Add, choose the tax for each item in the Tax 1 and Tax 2 columns of the items table, and the tax is calculated on that item’s price. Value Added Tax (VAT) is available by default at your account country’s rate. To add another tax or change a tax’s name or rate, choose Tax Settings from the same tax list. Whether a tax is inclusive or exclusive of the price is set in Tax Settings when the tax is added, not on the estimate screen.