This page is correct as of March 2019 and copied from  https://developer.xero.com/documentation/api/tax-rates#TaxConstraints


This advises what tax codes can be used and cant be used by account types.


This is an important reference when you get the following error with Posting and invoice from Actionstep that has a Xero Integration.


"The TaxType code 'xxx' cannot be used with account code 'xxx'." 



Tax Rate Constraints

In order to properly complete tax forms, certain tax rates can only be used with certain account types. This will vary depending on the rate and country. Sending a line item with a tax rate that can't be use with the line's account code will generate the error "The TaxType code 'xxx' cannot be used with account code 'xxx'."

Below is a list of the default rates that Xero organisations start with. Please note that users can edit the names and and create their own rates in Xero so this is only a guide - you'll need to do a GET of tax rates to know for certain what rate can be paired with what account type in the organisation you're connecting to.



Australia

TaxTypeTaxNameAssetsEquityExpensesLiabilitiesRevenue
BASEXCLUDEDBAS Excludedtruetruetruetruetrue
EXEMPTCAPITALGST Free Capitaltruetruetruetruefalse
EXEMPTEXPENSESGST Free Expensestruetruetruetruefalse
EXEMPTEXPORTGST Free Exportstruetruefalsetruetrue
EXEMPTOUTPUTGST Free Incometruetruefalsetruetrue
CAPEXINPUTGST on Capitaltruetruetruetruefalse
GSTONCAPIMPORTSGST on Capital Importsfalsefalsefalsetruefalse
INPUTGST on Expensestruetruetruetruefalse
GSTONIMPORTSGST on Importsfalsefalsefalsetruefalse
OUTPUTGST on Incometruetruefalsetruetrue
INPUTTAXEDInput Taxedtruetruetruetruetrue