WooPayments itself does not contain any functionality related to charging tax on customer purchases. However, WooPayments does have some features that can help when you need to report your sales to your local tax authority.
In the U.S., a Form 1099-K is an information filing required by the Internal Revenue Service (IRS). WooPayments is required to issue a 1099-K to U.S. persons if their total payments exceeds a specific minimum threshold.
We have a lengthy guide to 1099-Ks that should answer most questions. Keep in mind, however, that the WooPayments developers and support staff are not tax experts, and as such, there will be certain questions we cannot answer definitively.
For EU merchants who may require VAT invoices for WooPayments fees, those are provided under the Payments > Documents menu in your dashboard. (You will not see this menu if your business is outside the EU.) Our Documents page has further details on how to update your VAT info and access your invoices.