Craft Commerce: Calculating (Product + Shipping) + Tax? 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?
Currently there is a caveat, that order level shipping costs can not have tax applied to them. 

This means if you have any 'base shipping costs' applied  to the cart the tax engine can not see them because they are not on a line item. Currently the tax adjuster system only adds tax to line items.

This is an issue that will be fixed in a future release but will mean there needs to be a change to the way the adjustment system works. We would need to allow tax to be added to adjustments. 

If you want tax on shipping cost you would need to make all shipping rules only add tax to line items. Let me know if you have further questions and I will update my answer. 

UPDATE: see other answer for the final solution.