Main Expense Tax (MET) is available in the Tax Rates catalog (Settings > Billing & Invoices > Tax Rates) as an Invoice Total - Expenses tax. For projects migrated from the legacy setting, the tax is named Default Main Expense Tax.
To exclude specific expense entries from MET, add their Expense Item Type to the tax's Exemptions list. Billed amounts for exempted item types are excluded from the tax's taxable base, while the remaining expenses continue to be taxed normally.
The following alternatives are also available:
- Set the project or phase to 0% tax and apply taxes at the item level for activities and expenses.
- Set up a phase with 0% project-level tax and assign the applicable expenses to that phase.