The TaxType Code does not exist or cannot be used for this type of transaction

If you get the above error, you are using the wrong tax code. This could either be in Xero, or Workshop Software. In the case of the screenshot above, it is an account in Xero (account "200") that needs to be fixed.

Workshop Software:

To resolve the issue in Workshop Software, you need to change the below Tax Types to match all the accounts that you are using in the boxes above. In the case of the above issue, account 200 is probably using a different tax type to the allocated for the sales tax type

We advise to use this only in situations where the error mentions the words INPUT (Sales) or OUTPUT (Purchases). Any other situation, use the Xero change option. 


Change the TaxType allocated to the account in Xero. You do this in Settings - Chart Of Accounts - Select the account (in the above example, 200)

The tax type needs to be the same as the ones set up in Workshop Software. In the case of the example, account 200 should be set up as "GST on Income", as per the above screenshot.