Play around with the setting and self resolved:
Basis of Product Tax Store Info
Basis of Shipping Tax Shipping Info
Tax Classes
ID Tax Classes
2 Shipping Tax
1 Taxable Goods
Zone Name Zone Description
Paypal Paypal Fee
Tax Rates
Priority Tax Class Zone Tax Rate Description:
1 Taxable Goods Paypal 6.20% Paypal Fee on Product
2 Shipping Tax Paypal 6.20% Paypal Fee on Shipping Info
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