The TaxEventType is taxable but the Tax Event &1 is not taxable

What causes this issue?

The CRM 3.x tax event determination has determined a tax event type that
is taxable but the determined tax event &V1& is not taxable.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Check the Customizing settings in:
<DS:SIMG.TTEVCL_TXSET>Define Tax Settings</>
<DS:SIMG.SIMGTXDTETDEFAULT>Define Tax Event Determination</>
<DS:SIMG.SIMGEUTXDETERM>Define Tax Determination EU</>

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.