In the Netherlands it is mandatory to charge VAT on shipping costs. The "Shipping with VAT" setting found at "Starting point > My Webshop > Settings > Shipping cost & logistics > Shipping settings" and then shipping cost with VAT must be set to "Yes" for this. The system then automatically calculates the shipping costs.
Which VAT scale is used?
In the Netherlands, the rule is that the VAT rate on shipping costs is determined by the products that are shipped. If you send food items, 6% VAT will be charged on the shipping costs. When you send luxury items, the VAT of shipping costs will be 21%. If you send a mix of VAT rates, the highest discount is calculated, so 21%.
Make sure to look into what VAT rates apply to your country.