Back Office
Category
Navigation: Log into the Back Office for your Store, then select Products and Items > Category
When creating or updating a Category: under Visibility, the Exclude Receipt Tax toggle appears:

Tool Tip: 'Receipt Tax will not be applicable for the Category'

If enabling the Exclude Receipt Tax toggle (setting to YES): the Reminder pop-up with the below alert message appears, along with Okay and Cancel / X Close options:
'If the Exclude Receipt tax is enabled for the Category, then it will be enabled for all Subcategories under this particular Category. Do you need to proceed?'

If Okay is selected, it will apply to the Category as well as all Subcategories under it.
If Cancel or X Close is selected, the pop-up will be closed without changing the toggle.
If disabling the Exclude Receipt Tax toggle (setting to NO): the Reminder pop-up with the below alert message appears, along with Okay and Cancel / X Close options:
'if the Exclude Receipt Tax is disabled for the Category, then it will be disabled for all subcategory(s) under this particular Category. Do you need to proceed?'

If Okay is selected, it will apply to the Category as well as all Subcategories under it.
If Cancel or X Close is selected, the pop-up will be closed without changing the toggle.
Subcategory
Navigation: Log into the Back Office for your Store, then select Products/Items > Subcategory
- When creating or updating a Subcategory: under Visibility, the Exclude Receipt Tax toggle appears:

Tool Tip: 'Receipt Tax will not be applicable for the Subcategory'

If enabling the Exclude Receipt Tax toggle, the Receipt Tax will not apply to the Subcategory.
If disabling the Exclude Receipt Tax toggle, the Receipt Tax will apply to the Subcategory.
POS
Upon enabling the Exclude Receipt Tax toggle, the Receipt Tax won't apply to those created Categories and Subcategories in iPad and POS.
With Receipt Based Tax
Without Receipt Based Tax