What this error means
You might see errors like:
Tax Type Code Mismatch
Tax Rate Inactive
This error appears when Link My Books tries to post a settlement using a tax rate that is not compatible with the selected account in your accounting software.
Xero and QuickBooks require certain tax rates to be used only with specific account types. If the tax rate configured in Link My Books does not match what the accounting system allows for that account, the transaction will be rejected.
Why this happens
Common reasons include:
The tax rate selected in Link My Books is not valid for the account being used
The account type in your chart of accounts does not support the selected tax rate
The tax configuration in your accounting software was changed after the initial setup
This restriction comes from Xero or QuickBooks, which enforce tax rules when transactions are created.
How to resolve it
Review the tax settings used for your settlements.
Steps:
Open Link My Books
Go to Accounting & Taxes settings
Review the tax rate mappings
Ensure the selected tax rates are compatible with the mapped accounts
You should also check in Xero or QuickBooks that:
the tax rate still exists
the tax rate is active
the tax rate matches the account type being used
If necessary, update the tax rate mapping in Link My Books and send the settlement again.
When to contact Link My Books support
Contact Link My Books support if:
the tax rates appear correct but the error still occurs
you are unsure which tax rate should be used
the settlement continues to fail after updating the tax mapping
Please include:
the exact error message
a screenshot of your Accounting & Taxes settings in Link My Books
a brief description of what you were trying to do when the error appeared
This will help our team investigate more quickly.