Tax Liability x Tax ID... How are these two working together? The Tax ID is not valid for the chosen Tax Liability

I keep getting this message when trying to change the tax liability on a customer…

“The Tax ID is not valid for the chosen Tax Liability”

Here’s the setup on the customer:
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It will only let me assign the tax liability I want by changing the “Inside EU” field on the tax liability…

So somehow this tax ID is being validated as inside EU or something… this is what I don’t understand…

And what’s wrong with checking Inside EU if the definition of that field is, " If the checkbox is selected, this tax liability is used for sales/purchases inside the European Community (EC)."

This customer is buying and selling inside the EC…

What gives?!!?

In short, looking to learn more about how these two fields, tax liability and tax ID, work together.

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Looking into it, the Inside EU code field doesn’t seem to have anything to do with TAX ID on the customer, but rather the Country of Origin Code on country maintenance.

For some reason it was FRG on Germany and when I changed it to DE, then it let me use the tax code that I originally was receiving an error for…