SAP Message CA_TTE544 - Enter valid exempted tax region for BP &3 with country &2

Diagnosis
The address data used by the TTE has not been defined for taxdetermination.
Address data is mandatory on Business Partner level and optional on Itemlevel. For tax determination, the address data on item level takespriority.

System Response
Tax determination is not possible.

Procedure
In Customizing for the TTE, check the address data:
Transaction Tax Engine -> Tax Maintenance Settings -> Tax Location-> Define Tax Location
In your document, check the entries for both the Business Partner andItem level and adjust accordingly.