Tax Type is missing or not valid for one or more line items in this order

What this Means

Xero enforces a fixed list of Tax Types and which transaction types or account categories each can be applied to. This error indicates that the specified Tax Type either doesn’t exist in your organisation or is not allowed on the sales/purchase accounts used by one or more line items in the order.

Resolution Steps

1. Log in to Xero

   Sign in to your organisation’s Xero account.

2. Open Tax Rates
   • Navigate to Accounting → Advanced.

3. Click on Tax rates.

4. Verify the Tax Type exists
   • Look through the list for the tax type to see if it is missing.

• If it’s not listed, click New Tax Rate, select the Tax Type and enter it's Tax Components details, then Save.
  • Use Xero’s Tax Rates Code to match the Tax Code to its official name in your country (for instance, in Australia EXEMPTOUTPUT = "GST Free Income").

5. Navigate to Products and Services

   Navigate to Business → Products and Services.

6. Locate the affected items

   For each product in the error order, use the search bar to find its record.

7. Verify Purchase & Sales accounts

   In the Purchase and Sales sections, confirm that the assigned account codes are compatible with the product’s Tax Type.

   • If they aren’t, select an appropriate account from the dropdown.

8. Save your changes

   Click Save to update each product’s settings.

9. Re-post the order

   Return to your order dashboard, select the order that had the error, and click the Post to Xero button. The error should now be resolved.