This documentation is for Taxamo v1. If your account is with Taxamo v2 use the documentation at
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What is the cause of PayPal Error 10417 - The transaction cannot complete successfully?

PayPal has changed its behaviour and now needs an option to be enabled to accept transactions in a currency different from the merchant’s.

If you get this error it can be corrected in your PayPal portal by browsing to “Payment Receiving Preferences”. For the setting “Allow payments sent to me in a currency I do not hold” select “Yes, accept and convert them”.