Diagnosis
The address data used by the TTE has not been defined for taxdetermination.
Address data is mandatory on Business Partner levell and optionalon Item levell. For tax determination, the address data on itemlevel takes priority.
In this case the region &V1& for the country &V2& is not maintained inthe customizing.

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 Partnerand Item levell and adjust accordingly.