Location Based Tax

I looked in the docs, but I don't know if I missed this part: is the location based tax automatically set up?

as in, if I select this option, do I need to manually set up each country and look up their tax rates or does Perch shop do this automatically?

This is my first perch shop store so I'm a 100% noob here. Sorry if I missed this answer in the docs or if I missed read/understood.

Thanks!