There is an option when setting up Tax Rates to apply the tax to "**both (item + shipping costs)**" however when testing on the front end the shipping cost is added after tax is applied to the product and no tax percentage is applied to the shipping cost. 

The total amount payable is *(Product + Tax) + Shipping*. I want *(Product + Shipping) + Tax*. 

Is there more configuration needed so that the adjustments show correctly at checkout and the customer is charged the right amount?