The option Charge tax on this product, what does it correspond to?

LostPer
Excursionist
39 2 3

I'm single country e-commerce (atm) and I have entered all my products including VAT, both cost and sales price. 
What makes me confused is that if I uncheck the "Charge tax on this product" I get margin and profit displayed. If I check it I do not.

What is the right way to go? Should I enter all product data with our without vat/tax and what are the pros and cons in relation to my current setup?

 

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BiancaBlake
Excursionist
34 0 15

Per are you a U.S. company? Or Swedish? Or?

LostPer
Excursionist
39 2 3

Swedish

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