When you’re setting the calculation logic that will determine your commission rates, you’ll notice a question about whether or not tax (e.g. VAT) is included in your product pricing. (Only relevant to percentage-based commission offers.)
According to the Corporate Finance Institute, value added tax (VAT) is tax that “is assessed at each stage of purchase/production and paid by every successive buyer.” So you should only select this if it aligns with your current process.
If you select YES, the tax will still appear on your commission details, but the commission will not be applied.