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How to solve – “Tax setup is invalid”

The company’s tax configuration is incomplete or does not match the selected tax calculation mode.

For companies using US Sales Tax:

  1. In the Admin Center, open Setup → Company.
  2. Select Menu → Settings.
  3. Set Tax calculation mode to Sales Tax.
  4. Confirm that the required tax groups, areas, jurisdictions and tax details are configured in Business Central.

For companies using VAT:

  1. Open VAT Posting Setup in Business Central.
  2. Verify the required VAT business and product posting-group combinations.
  3. Confirm that each combination has the correct VAT percentage.
  4. Compare the setup with Integration → VAT groups in the Admin Center.

Indepth guide link: "Setup US Sales Tax and VAT setup"