Steps to Modify Your Tax Settings:
Go to Settings → Taxes and Fees.
Locate the tax you want to edit (for example, GST).
Click the Edit button beside it.
Under the tax details, review the note that says:
"Fee Exempt taxes are calculated against the raw taxable sale price of an invoice item (i.e. qty × price, minus any discount). If a Fee is applied to an item using a Fee Exempt tax, the Fee is not included in tax calculation for the Fee Exempt tax."
Check the Fee Exempt option (or ensure the setting is configured for the tax to exclude fees).
Click Apply to save your changes.
Result:
Your selected tax will now exclude service fees, gratuities, or other applied fees from its calculation. The tax will only apply to the base price of the item(s).
