diff --git a/app/Http/Controllers/AccountController.php b/app/Http/Controllers/AccountController.php
index 3c8454f0a4c7..d9b15907d3b8 100644
--- a/app/Http/Controllers/AccountController.php
+++ b/app/Http/Controllers/AccountController.php
@@ -1190,10 +1190,12 @@ class AccountController extends BaseController
         $account->auto_bill_on_due_date = boolval(Input::get('auto_bill_on_due_date'));
         $account->gateway_fee_location = Input::get('gateway_fee_location') ?: null;
 
+        /*
         if ($account->gateway_fee_location) {
             $taxField = $account->gateway_fee_location == FEE_LOCATION_CHARGE1 ? 'custom_invoice_taxes1' : 'custom_invoice_taxes1';
             $account->$taxField = false;
         }
+        */
 
         $account->save();
 
diff --git a/app/Models/Traits/ChargesFees.php b/app/Models/Traits/ChargesFees.php
index a68afdf16adc..f348e09d3c72 100644
--- a/app/Models/Traits/ChargesFees.php
+++ b/app/Models/Traits/ChargesFees.php
@@ -26,7 +26,18 @@ trait ChargesFees
         }
 
         if ($settings->fee_percent) {
-            $fee += $this->amount * $settings->fee_percent / 100;
+            // prevent charging taxes twice on the surcharge
+            $amount = $this->getRequestedAmount();
+            $taxField = $account->gateway_fee_location == FEE_LOCATION_CHARGE1 ? 'custom_invoice_taxes1' : 'custom_invoice_taxes1';
+            if ($account->$taxField) {
+                $taxAmount = 0;
+                foreach ($this->getTaxes() as $key => $tax) {
+                    $taxAmount += $tax['amount'] - $tax['paid'];
+                }
+                $amount -= $taxAmount;
+            }
+
+            $fee += $amount * $settings->fee_percent / 100;
         }
 
         if ($account->gateway_fee_location == FEE_LOCATION_ITEM && $includeTax) {
diff --git a/resources/views/accounts/invoice_settings.blade.php b/resources/views/accounts/invoice_settings.blade.php
index 4c1f33d7007a..37833c3b5028 100644
--- a/resources/views/accounts/invoice_settings.blade.php
+++ b/resources/views/accounts/invoice_settings.blade.php
@@ -238,7 +238,7 @@
                                 ->label(trans('texts.field_label'))
                                 ->placeholder($account->gateway_fee_location == FEE_LOCATION_CHARGE1 ? trans('texts.surcharge') : ' ')
                                 ->addGroupClass('pad-checkbox')
-                                ->append($account->gateway_fee_location == FEE_LOCATION_CHARGE1 ? false :
+                                ->append($account->gateway_fee_location == FEE_LOCATION_CHARGE1 && false ? false :
                                     Former::checkbox('custom_invoice_taxes1')
                                         ->value(1)
                                         ->raw() . trans('texts.charge_taxes')) !!}
@@ -247,7 +247,7 @@
                                 ->label(trans('texts.field_label'))
                                 ->placeholder($account->gateway_fee_location == FEE_LOCATION_CHARGE2 ? trans('texts.surcharge') : ' ')
                                 ->addGroupClass('pad-checkbox')
-                                ->append($account->gateway_fee_location == FEE_LOCATION_CHARGE2 ? false :
+                                ->append($account->gateway_fee_location == FEE_LOCATION_CHARGE2 && false ? false :
                                     Former::checkbox('custom_invoice_taxes2')
                                         ->value(1)
                                         ->raw() . trans('texts.charge_taxes'))