Different VAT rate for shipping

The site I am working on now needs to charge a different VAT rate on the shipping charge than for the merchandise that is sold. So there will be two separate VAT rates on every order. I have both tax rates published, how do I proceed?

Thanks

You should have two tax categories. In your products you will use one, and in your shipping methods you will use the other one.
All the taxes will be summed up and displayed in the cart/order.

Thanks, worked fine.

Why is there a tax rate setting that is different from the tax category? If you need to set up a new tax category in order to charge a new tax rate, then isn't one of these levels unnecessary? Just wondering.

You can have several tax rules using the same tax category for different zones. But you will then want different tax rates for each zone.

For example, tobacco might be taxed 60% in one province of Canada and 80% in another (and you have to collect the taxes even in states where you're not based in in Canada).