Item Tax Template based on shipping country?


I’m looking for a way to implement a taxation requirements of the European Union for sellers above a certain sales level.
The requirements are the following:

  • Sales tax is to be calculated based on the country of the customers shipping address
  • Some countries have special requirements, for example baby clothing in Luxemburg → Reduced taxation, while in most other countries → Standard taxation

As far as I understand it I would need to set a sales tax and charges template with zero rates for all the accounts. On top of that item tax templates will be applies, which I can create to my liking.

What I’m struggling with is the missing link between the Item Tax Template’s Tax category and the shipping country. I would have to set a tax category for every shipping address manually right?

Any help or explanation would be appreciated!