---
title: How to solve – “Tax setup is invalid”
description: Fix the “Tax setup is invalid” error in POS365 by verifying your Sales Tax or VAT configuration and ensuring the correct tax calculation setup.
---

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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](https://help.posone365.com/pos365/hc/en-dk/articles/27760929901724-setup-us-sales-tax?hsLang=en) and [VAT setup](https://help.posone365.com/pos365/hc/en-dk/articles/26621302412956-setup-of-vat-on-accounts-in-business-central-without-double-posting?hsLang=en)"

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